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1. XYZ Inc., a new manufacturing company, wants to build its human capital base. Which of the following staffing
programs should it rely upon?
a. identifying and hiring cheap sources of qualified labour in order to fill front-line positions quickly
b. identifying and hiring individuals with highly specialized skills who can train others in the organization
c. identifying college graduates with the requisite skills who can be promoted to management positions quickly
d. identifying and hiring the best and brightest individuals
ANSWER: d
2. Which of the following is an increasing source of success for organizations?
a. the knowledge, skills, and abilities of its top executives
b. the knowledge, skills, and abilities of its employees
c. the proper management of the knowledge, skills, and abilities of its employees
d. the knowledge, skills, and abilities of HR professionals
ANSWER: b
3. ABC Corporation wants to expand on its markets in its new strategic plan. The plan covers the use of key resources
available to the firm, including technology, people, and access to capital. Which of the following would be a critical
human capital component of the plan?
a. capital investments
b. employees’ skills
c. new markets
d. updated technology
ANSWER: b
4. Dave Ulrich, a professor of management, is quoted as saying that, in terms of learning and development: “Learning
capability is g times g….” What does this mean?
a. an employee’s knowledge, measured as g, multiplied by the employer’s goodwill
b. an organization’s goodwill multiplied by its generosity to employees in terms of salaries and benefits
c. an organization’s grand image and brand multiplied by its goodwill
d. an organization’s ability to generate new ideas multiplied by its adeptness at generalizing them throughout the
company
ANSWER: d
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5. Many prospective employees are interested in obtaining a job where they can learn new skills and improve existing
skills. What type of organization would be the most attractive to such candidates?
a. an organization that provides many formal training programs that are not easily transferable to other
organizations
b. an organization that provides many formal training programs that are very easily transferred to any job the
applicant might want to apply for later in his or her career
c. an organization that provides mentorship programs where employees attempt challenging situations under the
guidance of experienced senior staffers
d. an organization that provides “grow and learn” sessions where classroom sessions are backed up by on-thejob training
ANSWER: c
6. Why does effective management of human resources provide a firm with competitive advantage?
a. because it is financially cheaper to acquire people versus other resources
b. because people help to accelerate the use of technology
c. because it is difficult to replicate how we manage people in organizations
d. because it is easier to manage people versus other resources
ANSWER: c
7. HRM plays an important role in organizations by balancing the sometimes competing demands of which of the
following?
a. competitive challenges and employee concerns
b. international challenges and employee concerns
c. employee concerns and employer challenges
d. competitive and employee challenges
ANSWER: a
8. Approximately what percentage of the Canadian economy is affected by global competition?
a. 70-85%
b. 60-75%
c. 50-65%
d. 40-55%
ANSWER: a
9. Which of the following is NOT a key benefit of corporate social responsibility?
a. avoiding lawsuits
b. improving earnings
c. attracting more applicants
d. improving pay for employees
ANSWER: d
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10. In today’s highly competitive environment, managing organizational change has become which of the following?
a. a core competency of the organization
b. a product of globalization and technological advancement
c. a proactive method of downsizing
d. the preferred method of reacting to a decrease in organizational performance
ANSWER: a
11. What was the first major trade agreement of the twentieth century to establish rules and guidelines for global
commerce?
a. NAFTA (North American Free Trade Agreement)
b. GATT (General Agreement on Tariffs and Trade)
c. FTAA (Free Trade Area of the Americas)
d. APEC (Asia Pacific Economic Cooperation)
ANSWER: b
12. Company A has decided to hire someone outside the company to perform tasks that could be done internally. What is
this practice called?
a. contracting
b. outplacement
c. employee leasing
d. outsourcing
ANSWER: d
13. Which organization has the BEST chance of implementing a successful change initiative?
a. one that has ensured the employees are not overburdened with work relating to the change and have time to
focus on their jobs
b. one that has been very positive and relaxed throughout, ensuring not to establish a sense of urgency and
always reporting positive effects
c. one that has ensured good news is shared and the change victory is celebrated as soon as some indicators
appear positive
d. one that has ensured the changes are aligned with the organizational culture in important ways
ANSWER: d
14. The importance of Six Sigma to HR extends to all of the following EXCEPT which one?
a. performance management
b. employee benefits
c. training
d. communication
ANSWER: b
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15. HRIS systems in some organizations help managers to connect with employees and with the HR data they need.
What type of technological effect is this?
a. relational
b. operational
c. transformational
d. configurational
ANSWER: a
16. HRIS systems in some organizations, such as Corning Inc., are changing the way HR processes are designed and
executed. What type of technological effect is this?
a. relational
b. operational
c. transformational
d. configurational
ANSWER: c
17. Organization A is attempting to foster proactive change within the firm. This organization is forming teams and
extending its processes to include training, performance management, communication, culture, and even rewards.
The organization hopes to improve its ability to catch mistakes before they happen. What is Organization A
implementing?
a. Six Sigma
b. continuous improvement
c. reengineering
d. total quality management
ANSWER: a
18. Organization C is attempting to manage reactive change within the organization. This organization is radically
changing every process through redesigning and rethinking from the ground up. The firm needs a dramatic change in
order to survive. What is Organization C implementing?
a. Six Sigma
b. continuous improvement
c. reengineering
d. total quality management
ANSWER: c
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19. Which of the following is a key motivator for offshoring?
a. increased productivity
b. better just-in-time operations
c. better access to technology
d. lowered labour costs
ANSWER: d
20. XYZ Inc. decided to lay off a relatively large proportion of their employees due to poorer-than-anticipated financial
performance. What is this an example of?
a. proactive change
b. transformational change
c. transitional change
d. reactive change
ANSWER: d
21. In an effort to take advantage of a market opportunity, Apple created the iPhone in open-source format so that
anyone can develop and sell an iPhone application. What is this an example of?
a. proactive change
b. reactive change
c. managing change
d. transformational change
ANSWER: a
22. Employee productivity is directly driven by three key factors. Which of the following is NOT one of these factors?
a. low labour costs
b. employees’ abilities
c. employee motivation
d. the work environment
ANSWER: a
23. Which of the following is an example of corporate social responsibility?
a. providing career counselling to outsourced employees to increase their ability to find work
b. installing noise-reduction baffling in plants to decrease anticipated community complaints
c. sharing knowledge freely throughout the organization to improve employee efficiency and workflow
d. providing speed-reading courses for front-line staff to improve their abilities in absorbing new information
ANSWER: b
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24. Which type of work would a knowledge worker most likely engage in?
a. deciding which type of fertilizer to buy wholesale for a landscaping business
b. counting the number of grocery items in carts leaving a wholesale store
c. monitoring children on new daycare playground equipment
d. installing new ink cartridges in colour photocopiers in an office environment
ANSWER: a
25. Information technology impacts HRM practices in several important ways. Which of the following is one such way?
a. Paper waste from employee files is drastically decreased.
b. Convenience in general has increased.
c. Employee recording of all types is carried out much faster.
d. Many HR functions can now be considered “self-serve.”
ANSWER: d
26. Which of the following is a critical demographic-related problem facing Canadian firms?
a. an increasingly homogenous population
b. retirement of baby boomers
c. migration from Ontario
d. increasing salaries for employees
ANSWER: b
27. What are millennials also known as?
a. Generation A
b. Generation B
c. Generation X
d. Generation Y
ANSWER: d
28. ABC Bank is experiencing rapid retirement of baby boomers. The bank needs to retain its employment levels
because of the volume of work, and it does not want to increase the workload of its employees. Which of the
following is a good strategy for the bank to pursue to address this situation?
a. Do nothing as the situation will rectify itself.
b. Offer higher compensation packages to attract qualified candidates.
c. Downsize the firm to save on labour costs.
d. Increase production efforts so as to gain more revenue.
ANSWER: b
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29. Which of the following is a key benefit for organizations when they rehire retirees?
a. lower health care costs
b. better strategic planning
c. improved group performance
d. lower turnover
ANSWER: d
30. Which of the following is NOT an approach generally used by organizations to try to lower labour costs?
a. employee development
b. outsourcing
c. employee leasing
d. relocating aspects of their operations to countries in the developing world
ANSWER: a
31. Which of the following is one of the largest expenditures of service companies?
a. production costs
b. marketing costs
c. labour costs
d. distribution costs
ANSWER: c
32. In an effort to prevent downsizing its employees, ABC Inc. has asked its staff to accept reduced pay. What strategy
is ABC Inc. using?
a. furloughing
b. employee leasing
c. reduced downsizing
d. outsourcing
ANSWER: a
33. Which statement best reflects the current view on the efficacy of offshoring as a cost reduction measure?
a. While organizations can save with this practice, hidden costs, such as productivity loss during the transition,
can chew up much of the financial gains.
b. The practice of offshoring has been one of the most positive HR trends of the last ten years.
c. The continuous shifting of global economies makes offshoring a necessary function for organizations to
survive.
d. Offshoring only works if top managers begin early in the process to plan their key strategies, such as
alternative talent pools and workforce training.
ANSWER: a
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34. ABC Corporation wants to contain its costs while allowing it to maintain working relationships with the employees
while shifting administrative costs to another firm. What is this practice an example of?
a. professional employer organization
b. gainsourcing
c. employee leasing
d. outsourcing
ANSWER: c
35. Which of the following is a major strength of employee leasing?
a. Employee leasing shifts employment costs to the PEO.
b. With employee leasing, the PEO allows organizations to increase their productivity.
c. Employee leasing allows organizations to offer better job security through the strength of the PEO.
d. With employee leasing, the PEO can manage employee issues.
ANSWER: a
36. What is the Canadian workforce expected to exhibit by 2031?
a. It is expected to exhibit about the same demographic mix as it does today.
b. It is expected to exhibit a decrease in ethnic diversity.
c. It is expected to exhibit an increase in ethnic diversity.
d. It is expected to exhibit a decrease in retirements.
ANSWER: c
37. Which of the following trends is causing a major organizational concern that the expertise of employees will be
rapidly drained from their companies?
a. Generation nexus is thus far not demonstrating a dedication to training and education.
b. There is an increase of uneducated women entering the workforce.
c. Recruitment of lower-skilled immigrant workers is increasing.
d. Large proportions of some workforces are nearing retirement.
ANSWER: d
38. Which of the following best captures the list of modern social issues in HRM?
a. changing work structures, attitudes toward work and family, and increasing labour costs
b. changing demographics, employer/employee rights, and attitudes toward work and family
c. changing demographics, increasing labour costs, and global economic pressures
d. corporate social responsibility, organizational citizenship behaviour, and changing work structures
ANSWER: b
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39. Which statement best describes the relationship among gender, education, and pay?
a. Women generally earn less than men do; however, when they have an advanced degree they earn the same
amount as men.
b. Men and women generally earn the same amount except when neither group has any higher education.
c. Women consistently and in every category earn less than men with an equivalent amount of education.
d. Men with a university degree earn approximately the same as women with an advanced degree.
ANSWER: c
40. Many Canadian firms are shifting some of their work and jobs to overseas locations. What is this business practice
called?
a. nearshoring
b. offshoring
c. employee leasing
d. downsizing
ANSWER: b
41. Which of the following groups is responsible for building an organization’s skilled and motivated workforce?
a. HR managers
b. line managers and supervisors
c. department managers
d. HR and line managers
ANSWER: d
42. Which of the following is a key responsibility of the human resources manager?
a. ensuring the credit rating of the organization
b. balancing the organization’s accounts
c. policy formulation and implementation
d. securing new markets
ANSWER: c
43. What are the competencies of the human resources manager?
a. business mastery, HR mastery, and executive mastery
b. business mastery, HR mastery, and personal credibility
c. business mastery, HR mastery, personal credibility, and change mastery
d. change mastery, personal credibility, union mastery, and HR mastery
ANSWER: c
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44. What is the changing nature of the HR manager’s role increasingly focused on?
a. policy formulation
b. international issues
c. privacy issues, global management issues, HR planning, and downsizing issues
d. basic practices like staffing, but also policy development, employee advocacy, and advice
ANSWER: d
45. Which of the following best summarizes the competency model for HR professionals?
a. HR professionals require change mastery, HR mastery, personal credibility, and business mastery.
b. HR professionals require HR mastery, business mastery, global acumen, and change mastery.
c. HR professionals require IT mastery, HR mastery, business mastery, and ethics.
d. HR professionals require IT mastery, HR mastery, global acumen, and change mastery.
ANSWER: a
Scenario 1.1
Canada Proud is a small food processing company located in northern British Columbia. Recently, it has faced
pressures from competitors who have been able to produce similar products more cheaply. The owners of Canada
Proud are looking into the possibility of starting a branch of the company in Mexico. Trade agreements among
countries around the globe help companies like Canada Proud in becoming globally competitive. However, the
company is aware that there may be opposition to such a move, especially if it affects the future viability of its
current operations.
46. Refer to Scenario 1.1. Which trade agreement would be applicable in Canada Proud’s case?
a. General Agreement on Tariffs and Trade (GATT)
b. North American Free Trade Agreement (NAFTA)
c. North American Economic Cooperation (NAEC)
d. Canada-Mexico Free Trade Agreement (CMFTA)
ANSWER: b
47. Refer to Scenario 1.1. How can locating a new division in Mexico help the company become more competitive?
a. It can reduce labour costs.
b. It will help the image of the company.
c. It will help the company become larger and better able to challenge competitors.
d. It will ensure access to Latin American markets for its products.
ANSWER: a
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48. Refer to Scenario 1.1. What would be a big challenge for Canada Proud’s HRM professionals if the company
decides to open a division in Mexico?
a. convincing the Canadian government that it would be better to do business in Mexico
b. acquiring the physical facilities in Mexico
c. laying off workers in its current operations
d. hiring employees in Mexico with the relevant skills
ANSWER: d
49. Refer to Scenario 1.1. One way to avoid or reduce criticism of potential exploitation of Mexican workers through the
use of sweatshops and low wages would be to practise “good citizenship.” What is the term used to describe such
“good citizenship”?
a. corporate social responsibility
b. corporate good citizenship
c. organizational citizenship
d. corporate philanthropy
ANSWER: a
50. Refer to Scenario 1.1. How can setting up a branch in Mexico affect the future viability of Canada Proud’s current
operations?
a. Trade agreements do not allow companies to run exactly the same operations in two countries.
b. Public pressure in Canada would force the closure of the current operations.
c. The cost advantages in Mexico may lead the company to close its operations in British Columbia.
d. The pressure to manage more than one set of operations is always too much for a single company.
ANSWER: c
Scenario 1.2
The leadership at ABS Inc. has been pondering on the use of higher levels and intensity of technology in their
operations. The organization has a close knit group of about 200 employees and a strong organizational culture. It is
worried that its employees could become dependent on technology and this would affect the culture. The firm is also
worried about the costs to implement the technology and whether the employees can be trained.
51. Refer to Scenario 1.2. While ABS is worried about technology’s effect on its culture, there is another potentially
negative effect for some workers. What is it?
a. There would be less need for unskilled workers.
b. The organization would become more inefficient.
c. The image of the firm would be adversely affected.
d. There would be pay cuts.
ANSWER: a
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52. Refer to Scenario 1.2. What is a key advantage for ABS Inc. if they install better HRIS systems?
a. They will outperform all competitors.
b. HR personnel can concentrate on strategic issues versus routine.
c. Employees will be better paid.
d. Application rates will increase.
ANSWER: b
53. To achieve sustainable competitive advantage through people, an organization’s employees’ skills, knowledge, and
abilities must be widely available in the labour market.
a. True
b. False
ANSWER: False
54. The knowledge, skills, and capabilities that impact a company’s performance but do not necessarily show up on its
balance sheet are known as human capital.
a. True
b. False
ANSWER: True
55. Organizations own their human capital, including investments made in training and development.
a. True
b. False
ANSWER: False
56. HR programs and assignments are often the primary method by which knowledge is transferred among employees.
a. True
b. False
ANSWER: True
57. HR professionals do not need to fully understand the economic and financial matters pertaining to their organization.
a. True
b. False
ANSWER: False
58. One of the main reasons change efforts fail is that organizations do not create a sense of urgency.
a. True
b. False
ANSWER: True
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59. Reallocation of resources and assets is most often the reason for failed change management.
a. True
b. False
ANSWER: False
60. The extent to which organizations are successful in focusing on internal management issues often separates the
winners from the losers in today’s competitive world.
a. True
b. False
ANSWER: False
61. To be successful, organizations should seek to align their processes with customer needs.
a. True
b. False
ANSWER: True
62. “Six Sigma” refers to the six criteria for the Malcolm Baldrige National Quality Award.
a. True
b. False
ANSWER: False
63. Organizations known for product and service quality recognize the importance of employees in fostering quality
improvements.
a. True
b. False
ANSWER: True
64. Employee motivation, teamwork, corporate culture, employee education, performance management, and rewards are
the six aspects in the quality improvement program known as “Six Sigma.”
a. True
b. False
ANSWER: False
65. Reengineering is a statistical method of translating customer needs into separate tasks and defining the best way to
perform each task.
a. True
b. False
ANSWER: False
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66. To launch a successful reengineering effort, it is important that managers build on existing processes.
a. True
b. False
ANSWER: False
67. To successfully manage change, organizations, particularly in fast-growing industries, should wait to see how external
forces impact performance, and then develop a plan to react to those changes.
a. True
b. False
ANSWER: False
68. In a recent survey, only about two-thirds of companies reported having a formal change management program to
support their change initiatives.
a. True
b. False
ANSWER: True
69. A recent study suggests that about 55 percent of Canada’s workforce will be impacted by globalization, with
knowledge workers and manufacturing jobs taking the brunt of the impact of the competition by lower-wage
countries.
a. True
b. False
ANSWER: False
70. Employees and the public at large are demanding that employers demonstrate greater social responsibility.
a. True
b. False
ANSWER: True
71. The introduction of advanced technology tends to increase the number of jobs that require basic skills.
a. True
b. False
ANSWER: False
72. Because of the “dot-com bust,” the initial explosive success of Internet business declined drastically and is still in a
moderate decline.
a. True
b. False
ANSWER: False
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73. In general, many companies are realizing diminished demand for “touch labour” and an increasing demand for
“knowledge workers.”
a. True
b. False
ANSWER: True
74. A human resource information system (HRIS) provides current and accurate data for control and decision making by
managers.
a. True
b. False
ANSWER: True
75. Because of its importance, HR managers in progressive organizations are frequently assuming sole responsibility for
the implementation of information technology.
a. True
b. False
ANSWER: False
76. An important hidden cost of layoffs is a loss of institutional memory and trust in management.
a. True
b. False
ANSWER: True
77. Labour costs are one of the largest expenditures of any organization.
a. True
b. False
ANSWER: True
78. Rather than simply laying off people in downsizing efforts, companies such as L.L. Bean rely upon voluntary
separation programs to provide an incentive for employees to leave on their own accord.
a. True
b. False
ANSWER: True
79. Almost all Canadian employers have engaged in some type of downsizing.
a. True
b. False
ANSWER: False
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80. Methods of reducing labour costs include downsizing, outsourcing, and employee leasing.
a. True
b. False
ANSWER: True
81. Outsourcing is positively related to improving key competencies of the firm.
a. True
b. False
ANSWER: True
82. An increased reliance on outsourcing is likely to increase the morale and productivity of the employees that remain
on the job.
a. True
b. False
ANSWER: False
83. Employee leasing refers to employing workers in their homes rather than within the traditional office environment.
a. True
b. False
ANSWER: False
84. Employee leasing shifts administrative costs from the company to a professional employer organization.
a. True
b. False
ANSWER: True
85. Employee productivity is the result of a combination of employees’ abilities, motivation, and work environment, and
the technology they have to work with.
a. True
b. False
ANSWER: True
86. It is quite possible that when managers increase costs productivity often rises.
a. True
b. False
ANSWER: False
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87. Older workers now are choosing to work longer.
a. True
b. False
ANSWER: True
88. Currently, the percentage of women in the labour force is 35 percent.
a. True
b. False
ANSWER: False
89. Women are heavily concentrated in managerial occupations.
a. True
b. False
ANSWER: False
90. Due to increases in education, the gap between the educated and the non-educated is decreasing.
a. True
b. False
ANSWER: False
91. Managing diversity means ensuring all employees are treated equally.
a. True
b. False
ANSWER: False
92. Managers in general and HR managers in particular should be concerned with the makeup and expectations of their
employees.
a. True
b. False
ANSWER: True
93. Employees today are less likely to define success only in terms of financial gain.
a. True
b. False
ANSWER: True
94. Family-friendly companies may risk alienating those employees who cannot utilize benefits provided.
a. True
b. False
ANSWER: True
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95. Most human resources issues have little relevance for line managers.
a. True
b. False
ANSWER: False
96. Some companies report that offering family-friendly benefits is so successful there are virtually no drawbacks.
a. True
b. False
ANSWER: False
97. One of the responsibilities of HR managers is to provide advice and counsel to line managers.
a. True
b. False
ANSWER: True
98. An HR manager is typically expected to function as an in-house consultant to supervisors, managers, and executives.
a. True
b. False
ANSWER: True
99. Because HR managers function in an advisory role, they are responsible for issuing policy revisions and
implementing them.
a. True
b. False
ANSWER: False
100. Top management increasingly expects HR managers to reduce their level of involvement in the overall strategy of
the organization and concentrate on improving administrative efficiency.
a. True
b. False
ANSWER: False
101. One of the roles of HR managers is to act as employee advocates despite their positions as managers.
a. True
b. False
ANSWER: True
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102. According to the diagram in the text, courage is an important aspect of being an HR professional.
a. True
b. False
ANSWER: True
103. What are the six competitive challenges facing human resources management departments?
ANSWER: The six competitive challenges facing human resources departments are (1) globalization, (2) embracing
new technology, (3) managing change, (4) developing human capital, (5) responding to the market, and
(6) containing costs.
(1) First, in order to grow and prosper, many companies are seeking business opportunities in global
markets. HR issues underlie concerns related to managing diverse cultures, geographies, laws, and
business practices.
(2) Second, the introduction of advanced technology has created a shift from touch labour to knowledge
workers, impacting the way in which workers are managed. In addition, technology has altered the
methods of collecting employment information, speeding up the processing of that data, and improving
the process of internal and external communication.
(3) Third, to become faster and more adaptable, many organizations are seeking ways to manage
change. Programs such as TQM, downsizing, reengineering, outsourcing, and the like are examples of
changes that organizations are making to modify the way they operate to be more successful. Each of
these change efforts depends heavily on the adjustment of HR practices to facilitate and manage
evolving issues related to an organization’s workforce.
(4) Fourth, organizational success is increasingly recognized as resting upon a firm’s ability to manage
human capital. HR practices are the fundamental tools by which organizations build, enhance, and
maintain their stock of human capital.
(5) Fifth, meeting the demands of the market is an important criterion for organizational success.
Management innovations such as TQM and reengineering represent two prominent approaches to
responding to customer demands.
(6) Finally, containing costs, especially labour costs, is an important component of organizational success.
As a result, many firms have engaged in initiatives such as downsizing, outsourcing, and employee
leasing as a means to realize greater cost controls. Each of these practices has significant implications
for HR practices. For example, during a downsizing initiative, HR has an obligation to help maintain a
healthy relationship between a company and its employees through services such as outplacement.
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104. What implications do the anticipated changes in demographics have for the management of human resources?
ANSWER: Demographically, the labour force is expected to age (with the aging of the baby boomers), creating a
larger number of older workers and a shrinking pool of young workers. HRM implications for aging
workers include (1) increases in the competition for entry-level workers; (2) increased costs of
compensation, health care, and retirement benefits; (3) career plateau and related motivational concerns;
and (4) training techniques that help senior workers “unlearn” old behaviours while acquiring new ones.
Diversity in the workplace will continue, with a higher proportion of women and minorities in the
workforce. HRM efforts that will be required to accommodate the needs of these workers include (1)
flexible schedules, parental leave, and daycare options for dual-career families; and (2) training for
supervisors in the management of a diverse workforce.
Educational levels are expected to rise, but functional and technological illiteracy will continue to be a
problem for employers. HR managers will need to plan training programs to assist employees in attaining
basic and developmental skills and overcoming these deficiencies.
Managing diversity involves managing employees as individuals while maintaining awareness of
characteristics common to all employees.
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1. What is the first step in the strategic planning process?
a. putting together the human resource management team
b. executing the human resource plan
c. establishing the mission, vision, and values of the organization
d. aligning the human resource plan and the strategic plan
ANSWER: c
2. Kramer Athletic Equipment is planning the future of the organization. In this process, the firm is making decisions
such as whether to maintain its current path as industry leader in the running shoe business, or branch out to include
casual footwear. In addition, the company is also discussing the various needs it will have for new staff if it does
choose to go in a new direction. What is Kramer Athletic Equipment doing?
a. strategic planning
b. human resources planning
c. applying principles of strategic human resources management
d. planning both its business needs and its HR needs
ANSWER: c
3. Organization Z is planning its future. In the process, the firm is making decisions such as what type of market it
wants to be the leader in and what path to take to achieve this goal. What is Organization Z doing?
a. strategic planning
b. human resources planning
c. performing a Markov analysis
d. applying principles of strategic human resources management
ANSWER: a
4. Eldorado Electronics wants to move from the stagnant calculator industry into the smart phone industry. To do so,
however, it would have to make significant changes to its approach to product development in order to gain an edge
in this competitive industry. What is the smartest next step for Eldorado Electronics?
a. It should consider how its strategic plans will affect its HR needs.
b. It should engage in human resources planning.
c. It should apply principles of strategic human resources management.
d. It should consider how its strategic plans will affect HR needs and also how its current HR status will affect
its strategic plans.
ANSWER: d
5. HR planning requires HR managers to focus more on an alignment between HR plans and which of the following?
a. the organization’s financial strategy
b. the organization’s marketing position
c. the organization’s strategic plan
d. the competitive environment
ANSWER: c
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6. On the entrance to Mac Pencils’ factory are the words “to provide the world with high-quality and dependable
pencils.” What is this an example of?
a. strategic vision
b. mission
c. core values
d. core resources
ANSWER: b
7. Which of the following best captures the strategic intent of the organization?
a. its mission
b. its vision
c. its core values
d. its strategic human resource plan
ANSWER: b
8. Which of the following best describes the core values of a company?
a. They represent the alignment of the strategic plan with the human resource plan.
b. They are strong enduring beliefs and principles of the company.
c. They are the basic purpose of the organization.
d. They provide a perspective on where the company is headed.
ANSWER: b
9. During its strategic retreat, the top management team at IAMME Gold Corporation pondered on the question
“What’s the organization reason for being?” What was the team most likely focusing on?
a. the firm’s strategic vision
b. the firm’s core values
c. the firm’s mission
d. the firm’s competitive position
ANSWER: c
10. As part of its strategic planning process, TJX Corporation is involved in a systematic, regular monitoring of major
external forces influencing the organization. What is this process called?
a. external forecasting
b. human resource planning
c. Markov analysis
d. environmental scanning
ANSWER: d
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11. Which of the following is NOT generally considered a component of a firm’s competitive environment?
a. rival firms
b. new entrants
c. labour laws
d. suppliers
ANSWER: c
12. Which of the following deliberations on the competitive environment generally involves an active role by HR
managers?
a. an analysis of new entrants
b. an analysis of the supply and demand for labour
c. coordination with suppliers
d. minimizing the technical advantages of rival firms
ANSWER: b
13. What do we call integrated knowledge sets within an organization that distinguish it from its competitors and deliver
value to customers?
a. core capabilities
b. competitive advantage
c. human capital
d. organizational competencies
ANSWER: a
14. An organizations’ core capabilities consist of three components. Which of the following is NOT one of them?
a. processes
b. systems
c. people
d. cultural audit
ANSWER: d
15. What do we consider the firm’s resources to be when they improve the efficiency or effectiveness of the company?
a. difficult to imitate
b. valuable
c. organized
d. rare
ANSWER: b
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16. Which statement best describes strategic knowledge workers?
a. They have skills that are valuable but not unique.
b. They have firm-specific skills directly related to company strategy.
c. They have unique skills directly linked to the company’s strategy.
d. As consultants, they have strategic skills.
ANSWER: c
17. Which statement best describes the skills of core employees?
a. Their skills are not directly related to company strategy.
b. They have firm-specific skills directly related to company strategy.
c. They have skills that are valuable but not unique.
d. Their skills are available to all firms.
ANSWER: c
18. From an organization’s perspective, what is an important shortcoming of having to rely on part-time employees?
a. limited benefits
b. costs of continuous replacement
c. lack of training
d. no job security
ANSWER: b
19. As part of the strategic planning process, XYZ Inc. recently examined the attitudes and activities of the company’s
workforce. What was XYZ doing?
a. an environmental scan
b. a cultural audit
c. a trend analysis
d. a demand forecast
ANSWER: b
20. Smith Frozen Foods performs a yearly employee survey to assess how its employees feel about safety on the job, the
comfort of the working conditions, and their general level of satisfaction with their work, managers, and coworkers.
What is Smith Frozen Foods most likely performing?
a. a job satisfaction survey
b. an environmental analysis
c. a cultural audit
d. an engagement measure
ANSWER: c
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21. What is values-based hiring?
a. hiring employees whose values correspond to their corporate cultures
b. hiring employees based on good ethical values
c. hiring decisions that lead to new values being adopted by the company
d. hiring executives who then instill their values in the company
ANSWER: a
22. Which of the following best describes forecasting human resources needs?
a. It is scientific and relatively error-free.
b. It is difficult and should only be done on rare occasions.
c. It should rely strictly on quantitative approaches, which utilize sophisticated analytical models.
d. It estimates the number and type of people that are needed to meet organizational objectives.
ANSWER: d
23. Which of the following should you take into account when forecasting demand?
a. absenteeism
b. turnover
c. business cycles
d. labour mobility
ANSWER: c
24. Kappa Technology is a firm in the high-technology sector. It needs to hire individuals with very specific knowledge
and abilities, and it needs to do so quickly. Which aspect of employee forecasting will be most important for this
company?
a. skills inventories
b. staffing tables
c. Markov analysis
d. succession planning
ANSWER: a
25. XYZ Corporation wants to track the percentage and actual number of employees who remain in each of the firm’s
job from one year to the next. Which of the following would XYZ Corporation benefit from?
a. a replacement chart
b. a skills inventory
c. a Markov analysis
d. a succession plan
ANSWER: c
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26. Manning Logistics laid off nine employees from data-entry positions in its finance division. Two weeks later, it hired
15 employees into data-entry positions in the inventory division. What mistake has the company committed?
a. faulty cultural audit
b. not forecasting properly
c. faulty goal alignment
d. not analyzing the internal labour force
ANSWER: b
27. What is the difference between trend analysis and management forecasts?
a. Trend analysis is used to analyze the business environment and management forecasts predict labour needs.
b. Trend analysis uses organizational indexes and management forecasts utilize statistical techniques.
c. Trend analysis is quantitative and management forecasts are qualitative.
d. Trend analysis has proven success and management forecasts have major shortcomings.
ANSWER: c
28. Which of the following is a graphical representation of all organizational jobs along with the numbers of employees
currently occupying those jobs and future employment requirements?
a. a Markov analysis
b. a trend analysis
c. a skills inventory
d. a staffing table
ANSWER: d
29. What is the most important information obtained from a Markov analysis?
a. human capital readiness
b. what types of attitudes employees have
c. what positions are going to be coming open and will require a new hire
d. how many individuals are ready for promotion
ANSWER: c
30. Which of the following is NOT a qualitative approach to demand forecasting?
a. trend analysis
b. Delphi technique
c. soliciting expert opinion
d. management forecast
ANSWER: a
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31. Which of the following is the process of identifying, developing, and tracking key individuals so that they may
eventually assume top-level positions?
a. target forecasting
b. predicted change
c. succession planning
d. replacement selection
ANSWER: c
32. As part of the SWOT analysis, the internal analyses of the firm would include an analysis of which of the following?
a. opportunities
b. strategy
c. threats
d. weaknesses
ANSWER: d
33. Vindal Fabrics has determined that its organizational strength is being an industry leader in producing upholstery
fabrics for automobiles. The company believes its weakness is its performance in Southeast Asia. It has also
determined that it is missing an opportunity by not yet branching into upholstery for public transit seats. In order to
complete a SWOT analysis, does Vindal Fabrics need to do next?
a. It needs to see that its major threat is the economic downturn of the auto industry.
b. Its HR department needs to address the company’s major weakness.
c. It needs to perform a revenue analysis in order to see what chances it can take.
d. Its HR department needs to address the company’s missed opportunity.
ANSWER: a
34. Which of the following is a cooperative strategy pursued by firms?
a. joint ventures
b. mergers
c. acquisitions
d. diversification
ANSWER: a
35. In what way can HR best help ensure that a strategic alliance or joint venture goes smoothly in the beginning?
a. plan labour supply needs for both organizations
b. systematically monitor employee morale for both organizations
c. teach employees about the other organization
d. assess the compatibility of the two organizational cultures
ANSWER: d
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36. What do we call the internal alignment of HR practices to establish a configuration that is mutually enforcing?
a. vertical fit
b. horizontal fit
c. HR alignment
d. enforcing fit
ANSWER: b
37. What do we call reducing the workforce through the departure of employees who resign or retire?
a. attrition
b. contraction
c. contracting out
d. termination
ANSWER: a
38. Organization Y is a unionized textiles manufacturing company that is downsizing. What will Organization Y most
likely use when deciding whom to lay off first?
a. seniority
b. the payroll
c. what skills and abilities the company needs to thrive
d. talent
ANSWER: a
39. Severance pay is usually calculated based on which of the following?
a. the employee’s years of service and salary
b. complex formulas administered by the federal government
c. the employee’s skills and abilities
d. the employee’s education and performance
ANSWER: a
40. ATM Company has experienced a recent growth in its business. Which of the following is NOT a likely response to
its new HR demands?
a. Hire full-time employees
b. Ask employees to work over-time
c. Allow for attrition
d. Use contract workers
ANSWER: c
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41. What is an HR “dashboard”?
a. a strategic tool developed by the Boston Consulting Group
b. a SWOT analysis at the HR level
c. a balanced scorecard
d. a software that tracks and graphically displays HR statistics so they can be viewed by managers at a glance
ANSWER: d
42. Which of the following is a method for measuring a firm’s strategic alignment?
a. Markov analysis
b. a balanced scorecard
c. benchmarking
d. an HR “dashboard”
ANSWER: b
43. Which term refers to an enthusiastically adopted tool for mapping a firm’s strategy in order to ensure strategic
alignment?
a. target forecasting
b. predicted focus
c. balanced scorecard
d. replacement selection
ANSWER: c
44. Which of the following is an important use of the balanced scorecard?
a. to help balance internal and external fit
b. to help managers translate their firms’ strategic goals into operational objectives
c. to help managers balance the costs and benefits of HR strategies
d. to help with the SWOY analysis
ANSWER: b
45. An organization states that teamwork and working together are important in its strategy but gives bonuses to
individuals who excel independently. What is this an example of?
a. a misalignment of internal fit
b. a misalignment of external fit
c. a misalignment of internal and external strategy
d. a misalignment of strategy and HR
ANSWER: a
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Scenario 2.1
Blockbuster Canada was the first of its kind in Canada in the movie and games rental business and operated for
more than 21 years. However, with the advent of more modern technology accessible mainly through Netflix and
Rogers On Demand, Blockbuster struggled to stay relevant in a tech-savvy environment where videos and games
could now be rented conveniently from the comfort of one’s couch via computer or TV. Despite efforts to try to stay
relevant, Blockbuster did not leverage technology that had become an important part of their consumer base’s daily
lives. As a result, Blockbuster was not able to fight off the competition.
46. Refer to Scenario 2.1. To remain competitive, Blockbuster Canada needed to systematically monitor the major
external forces influencing the movie/game rental business. Which of the following would be important to its
success?
a. analysis of the internal environment
b. environmental scanning
c. changes in demographics
d. changes in its mission, vision, and values
ANSWER: b
47. Refer to Scenario 2.1. Blockbuster Canada managers could have successfully advanced the company and remained
relevant by focusing on which of the following?
a. an environmental analysis
b. what they do best, traditional rentals
c. technological changes including information technology and innovations
d. incentives to keep consumers coming back
ANSWER: c
48. Refer to Scenario 2.1. What is one of the most important assessments a firm like Blockbuster could have made in
order to stay relevant?
a. identifying the needs of its customers
b. identifying the needs of its producers
c. identifying the needs of its employees
d. teaming up with the competition
ANSWER: a
49. Refer to Scenario 2.1. Blockbuster’s competitive environment includes which of the following?
a. its customers, HR strategy, new entrants, core capabilities
b. its environmental scanning and analysis
c. its environmental analysis, strategic planning, and HR strategy
d. its customers, rival firms, new entrants, substitutes, and suppliers
ANSWER: d
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50. Refer to Scenario 2.1. For years, Blockbuster survived as a successful entity with various competitors until Netflix
and Rogers On Demand began making movies and games available online. Which of the following most likely
contributed to Blockbuster going out of business?
a. economic, global, political, and environmental factors
b. technological, psychological, and physical factors
c. technological changes, social concerns, and demographic and labour market trends
d. the lack of knowledge workers
ANSWER: c
Scenario 2.2
Avie Products Inc. is planning to add a third shift to its production schedule. It currently has 450 workers involved in
all aspects of its fertilizer business, best done in Canada. A recent surge in demand from its global customers is
driving the need for more workers; however, Simi Meher, the CEO, is concerned that the surge may be temporary,
especially in light of the recent economic downturns in the global environment where Avie does business.
51. Refer to Scenario 2.2. Which approach could Avie use to forecast demand for its products?
a. staffing tables
b. Markov analysis
c. skill inventories
d. trend analysis
ANSWER: d
52. Refer to Scenario 2.2. What would assist Avie in determining how many additional workers it would need for the
third shift?
a. reconciling supply and demand
b. Markov analysis
c. replacement charting
d. trend analysis
ANSWER: a
53. Refer to Scenario 2.2. What is the best strategy for Avie to follow with respect to workers on the third shift?
a. hire full-time employees to get their commitment
b. hire part-time staff
c. get management to do the extra work
d. outsource the work to India
ANSWER: b
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54. Refer to Scenario 2.2. Assume that Avie goes ahead with the third shift. What can the company use to evaluate the
effectiveness of this strategy in a year’s time?
a. Markov analysis
b. trend analysis
c. skill inventories
d. benchmarking
ANSWER: d
55. HR planning is the process of setting major organizational objectives and developing comprehensive plans to achieve
those objectives.
a. True
b. False
ANSWER: False
56. Increased emphasis on HR issues becomes especially critical when organizations consider global strategies,
relocation of plants, product innovation plans, and so forth.
a. True
b. False
ANSWER: True
57. Human resources planning plays a key role in organizational strategy implementation because organizational leaders
must make decisions regarding resource allocations to human capital, among other things.
a. True
b. False
ANSWER: True
58. Strategic plans have a strong external orientation that covers major portions of the organization, focusing mainly on
how the organization will position itself globally.
a. True
b. False
ANSWER: False
59. Human resources planning (HRP) is the conducting of recruitment and selection methods according to a strategic
plan.
a. True
b. False
ANSWER: False
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60. The mission statement of an organization is a description of the organization’s vision and values.
a. True
b. False
ANSWER: False
61. Organizational core values are the strong enduring beliefs and principles that a company uses as a foundation for its
decisions.
a. True
b. False
ANSWER: True
62. Environmental scanning involves the systematic monitoring of internal factors influencing the organization.
a. True
b. False
ANSWER: False
63. Economic factors in environmental scanning include general and global conditions.
a. True
b. False
ANSWER: True
64. The number of hours that Canadians work per week has been trending downward and now hovers around 33 hours
a week.
a. True
b. False
ANSWER: True
65. Nearly one-fifth of the workforce is made up of part-time, temporary, and self-employed workers.
a. True
b. False
ANSWER: True
66. National and regional unemployment rates are often considered a general barometer of labour supply.
a. True
b. False
ANSWER: True
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67. Human Resources and Skills Development Canada (HRSDC) analyzes labour markets to determine the supply and
demand for labour.
a. True
b. False
ANSWER: True
68. External supply of labour is central to strategic planning.
a. True
b. False
ANSWER: False
69. Internal analysis provides strategic decision makers with an inventory of organizational skills and resources.
a. True
b. False
ANSWER: True
70. A cultural audit asks questions such as “How do employees spend their time?”
a. True
b. False
ANSWER: True
71. Core capabilities are integrated skills and knowledge sets within an organization that distinguish it from its
competitors and deliver value to customers.
a. True
b. False
ANSWER: True
72. Core capabilities provide a long-term basis for technological innovation, product development, and service delivery.
a. True
b. False
ANSWER: True
73. In general, contract labour possesses skills and knowledge of less strategic value to the organization than core
knowledge workers.
a. True
b. False
ANSWER: True
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74. Organizations such as Canadian Tire and CIBC conduct cultural audits to examine the attitudes and activities of the
external workforce.
a. True
b. False
ANSWER: False
75. A cultural audit may examine how people are empowered.
a. True
b. False
ANSWER: True
76. A cultural audit asks questions such as “What is the ethnic make-up of my workforce?”
a. True
b. False
ANSWER: False
77. There are two approaches to HR forecasting: quantitative and qualitative.
a. True
b. False
ANSWER: True
78. Trend analysis is a qualitative approach to labour demand forecasting.
a. True
b. False
ANSWER: False
79. Trend analysis relies on a single business factor.
a. True
b. False
ANSWER: True
80. Forecasting may be as informal as having one person familiar with the organization anticipate HR needs.
a. True
b. False
ANSWER: True
81. Management forecasts are quantitative measurements of future employment needs.
a. True
b. False
ANSWER: False
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82. The Delphi technique works best in organizations where dynamic technological changes affect staffing levels.
a. True
b. False
ANSWER: True
83. Staffing tables provide data on external labour supply sources.
a. True
b. False
ANSWER: False
84. Markov analysis is a systematic monitoring of the major external forces influencing an organization.
a. True
b. False
ANSWER: False
85. Markov analysis focuses on the number of employees in particular jobs and their skill levels, compensation, and job
tenure.
a. True
b. False
ANSWER: False
86. Succession planning is the process of identifying, developing, and tracking key individuals so that they may eventually
assume top-level positions.
a. True
b. False
ANSWER: True
87. Replacement charts are listings of current jobholders who are potential replacements if an opening occurs.
a. True
b. False
ANSWER: True
88. SWOT analysis includes the strengths only for strategy formulation purposes.
a. True
b. False
ANSWER: False
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89. The stages of HR activity associated with a merger are (1) precombination, (2) combination, and (3) solidification
and assessment.
a. True
b. False
ANSWER: True
90. Value creation is what the firm adds to a product or service by virtue of making it; it’s the amount of benefits
provided by the product or service once the costs of making it are subtracted.
a. True
b. False
ANSWER: True
91. Through human resources planning, organizations strive for a proper balance between demand considerations and
supply considerations.
a. True
b. False
ANSWER: True
92. Decisions about employee layoffs are usually based on seniority and/or performance.
a. True
b. False
ANSWER: True
93. A disadvantage of overemphasizing seniority is that less competent employees receive the same rewards and
security as more competent employees.
a. True
b. False
ANSWER: True
94. Attrition is the fastest way to achieve workforce reduction.
a. True
b. False
ANSWER: False
95. In unionized firms, layoffs are typically based on performance.
a. True
b. False
ANSWER: False
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96. Attrition and early retirement are means for organizations to reduce excess labour.
a. True
b. False
ANSWER: True
97. Under the umbrella of layoff strategies are several work reduction options: reduced workweek, reduced shifts,
transfers to related companies, and so on.
a. True
b. False
ANSWER: True
98. The use of part-time employees creates a problem of labour costs at fast-food restaurants.
a. True
b. False
ANSWER: False
99. Over time, organizations may try to reduce their workforce by relying on attrition.
a. True
b. False
ANSWER: False
100. Severance pay is a lump-sum payment given to terminated employees.
a. True
b. False
ANSWER: True
101. Benchmarking is the process of comparing the organization’s processes and practices with those of other companies.
a. True
b. False
ANSWER: True
102. Internal fit (or alignment) means that HR practices are aligned with one another in a mutually reinforcing
configuration.
a. True
b. False
ANSWER: True
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103. Describe how human resources planning is integrated with strategic planning.
ANSWER: Through strategic planning, organizations set major objectives and develop plans to achieve those
objectives. HRP provides a set of inputs that determine what is or is likely to be possible, given the
number of available people, training needs, and other people-related issues. HR strategies and action
plans are developed according to the overall strategic goals that evolve from the strategy formulation
process. During the strategy implementation phase, HRP must make resource allocation decisions, and
implement policy, practices, and training that support the decisions and outcomes of the strategic planning
process.
104. Describe the three key elements of the HRP model.
ANSWER: The three key elements in the HR planning process are (1) forecasting demand, (2) forecasting supply,
and (3) balancing supply and demand considerations.
Forecasting demand involves estimating in advance the number and type of people needed to meet
organizational objectives. It may involve a quantitative approach using statistical analysis and
mathematical models or a qualitative approach focusing on employee performance and promotability.
Forecasting supply determines if there are sufficient numbers and types of employees available to staff
anticipated openings. Sources of supply can be external or internal.
HR planning should strive for a proper balance between the emphasis placed on demand considerations
and that placed on supply considerations. Demand considerations are based on the forecast of trends in
business activity. Supply considerations involve the determination of where and how candidates with the
required qualifications are to be found to fill vacancies.
105. Identify and briefly describe three strategies that managers frequently use to cope with a labour shortage.
ANSWER: (1) Overtime (i.e., asking employees to work extra hours) is a strategy used by most firms during peak
periods. (2) Increasingly, organizations are using part-time employees to increase flexibility in scheduling
and reducing payroll costs. Many organizations use part-time or contract employees to cover the
absences of regular, full-time employees. (3) In addition, nine out of ten Canadian companies—both large
and small—make some use of temporary employees. “Temps” are typically used for short-term
assignments, vacation fill-ins, for peak work periods, or to cover for employees taking sick leave,
pregnancy leave, and so forth.
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106. What are the advantages and disadvantages of using attrition as a downsizing strategy?
ANSWER: The primary advantage of using attrition (combined with a hiring freeze) is the ability to control and
predict compensation expenses that go beyond the salaries and benefits redeemed from departing
employees. When the organization does not replace departing employees, the reduction in recruitment,
orientation and training, office space costs, and so forth, can result in substantial savings.
However, the disadvantages of attrition are significant. Current employees may be overburdened with
the work of departing employees; their skills may not match the skill sets of the departed workers; and
no new skills or ideas are infiltrating the organization. In addition, the organization is unable to control
who leaves and who stays, which may result in valuable employees leaving, while less needed ones
remain. Attrition also poses the disadvantage of taking a long time, compared to processes that can be
accomplished rapidly, such as layoffs.
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1. Which of the following is the fastest growing demographic group in Canada?
a. visible minorities
b. Aboriginals
c. women
d. persons with disabilities
ANSWER: a
2. Organization Z is about to undertake an organization-wide process of ensuring equitable representation in terms of
designated groups, including an analysis and redressing of past discriminations. What is Organization Z
undertaking?
a. affirmative action policy implementation
b. employment equity policy implementation
c. pay equity policy implementation
d. an employment systems review
ANSWER: b
3. Which of the following is NOT a characteristic of labour force statistics in Canada today?
a. increased participations rates for women
b. changing immigration patterns
c. an aging population
d. increasing proportion of Aboriginals
ANSWER: d
4. A large accounting firm has 30 percent female UFE-certified accountants on staff. Women make up approximately
51 percent of the population and UFE-certified women make up approximately 15 percent of the labour force. Based
on this information, what is the best description of the situation for women at this large accounting firm?
a. They are concentrated.
b. They are underrepresented.
c. They are underutilized.
d. They are discriminated against.
ANSWER: a
5. Which of the following compounds the employment barriers facing Aboriginals in Canada?
a. negative past employment experience
b. illiteracy
c. reluctance to leave the area in which they grew up
d. language and culture
ANSWER: d
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6. In a legal sense, what are two key concepts of justice?
a. courts and tribunals
b. transparency and the glass ceiling
c. ethics and fairness
d. fair and foul play
ANSWER: c
7. According to the textbook, which group is most likely to view the Canadian Charter of Rights and Freedoms as a
disappointment?
a. unions
b. women
c. employers
d. religious groups
ANSWER: a
8. In Canada, what is a key characteristic of the occupations where women tend to be concentrated?
a. They are occupations in advanced technologies and education.
b. There is a heavy concentration of immigrants.
c. They are occupations that are increasingly becoming extinct.
d. They are occupations with lower pay compared to men.
ANSWER: d
9. Which legal defence can a religious organization use if it insists on hiring a member from its own faith?
a. adverse effect
b. adverse impact
c. bona fide occupation qualification
d. reasonable accommodation
ANSWER: c
10. ABC Inc. is experiencing problems with recruiting and retaining Aboriginals. Based on the research on cultural
values exemplified by Aboriginals, which of the following managerial practices may help with its problems?
a. increased executive pay
b. collective decision making
c. counselling
d. individual merit-based pay
ANSWER: b
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11. “Phil’s Antique Superstore” is hiring ten new customer service agents. All three of Phil’s stores are housed in
historic landmark buildings that are “heritage” sites and do not have wheelchair ramp access. Phil, the owner, has
indicated that city bylaws will not allow him to renovate and add a wheelchair ramp to his buildings because of their
heritage status. This fact makes the ability to “go upstairs” which of the following in relation to working at Phil’s?
a. an undue hardship
b. a reasonable accommodation
c. a bona fide occupational qualification
d. a system barrier
ANSWER: c
12. Which of the following is a possible outcome of a human rights complaint filed by an individual?
a. A settlement may be arranged, even if the complaint is unsubstantiated.
b. The Equal Rights Compliance Agency (ERCA) may become involved.
c. It is deemed as trivial by the CHRC and refused.
d. It can be waitlisted for years depending on how busy the CHRC is.
ANSWER: c
13. Which statement best describes the enforcement of provincial human rights laws?
a. Provincial laws are enforced in a similar manner except there is no court prosecution permitted.
b. Provincially regulated employers tend to be larger and more sophisticated.
c. HR professionals in provincially regulated firms tend to be very knowledgeable about human rights legislation.
d. Independent boards of inquiry have similar powers as a federal tribunal.
ANSWER: d
14. How is the Canadian Human Rights Act typically enforced?
a. by specially designated police officers
b. through proactive measures by the RCMP
c. through complaints by individuals
d. by human rights organizations
ANSWER: c
15. What is the most serious possible occurrence if an HR professional is dishonest in a human rights investigation?
a. The organization could be fined up to $50 000.
b. The HR professional could be imprisoned.
c. The HRPA would remove certification for a year.
d. The HR professional would be denied employment in the future.
ANSWER: b
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16. Green Grass Hospital pays its hallway painters/technicians nearly twice the hourly rate that it pays the nurses. Under
which of the following circumstances is this fact likely to cause further investigation in a pay equity program
implementation?
a. if the nurses have more seniority
b. if the painters have more training
c. if the nurses are predominantly women and the painters are predominantly men
d. if the painters’ union becomes involved in the process
ANSWER: c
17. Employers that pay men and women a different salary for performing jobs of comparable value violate the Pay
Equity Act (Ontario) only if the differences are based on which of the following?
a. gender
b. merit
c. seniority
d. incentive plans
ANSWER: a
18. What is the difference between pay equity and pay equality?
a. Equity is equal pay for work of comparable worth; equality is equal pay for equal work.
b. Equality is equal pay for work of comparable worth; equity is equal pay for equal work.
c. Equity is about fair pay for individual women employees; pay equality is required of all federally regulated
employers.
d. Equality is about fair pay for entire occupations; equity is required by law in every jurisdiction in Canada.
ANSWER: a
19. What is a recent change in the Federal Contractors Program?
a. Refugee status was added as a new designated group.
b. The contract threshold was increased to $1 million.
c. It was discontinued.
d. The provinces are now required to administer it.
ANSWER: b
20. Which of the following requires large firms bidding on federal government contracts worth $1 million or more to have
an employment equity plan?
a. the Canada Labour Code
b. the Federal Contractors Program
c. the Abella Commission
d. the Pay Equity Act
ANSWER: b
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21. What is the first step in the employment equity implementation process?
a. conduct a strategic discrimination gap analysis
b. establishment of a workplan
c. employment systems review
d. senior management commitment
ANSWER: d
22. Which of the following is NOT normally done in implementing employment equity in organizations?
a. collecting/analyzing data
b. establishing a workplan
c. ensuring pay equity
d. getting senior management commitment
ANSWER: c
23. Which of the following is the best example of how an organization’s leadership can demonstrate its commitment to
an employment equity plan?
a. allowing employees to fill out the employment equity survey on company time
b. offering a full explanation of the employment equity policy to top managers
c. offering a guarantee of confidentiality
d. publicly describing the organization’s commitment to employment equity
ANSWER: d
24. Which of the following people would be the best choice for an organizational employment equity representative?
a. Bill has belonged to the organization for 15 years, beginning on the shop floor, and is now a manager. He is
well known and respected within the organization. Bill’s sister, who lives with him, is disabled and uses a
wheelchair.
b. Sandeep is a member of a designated group, is new to the organization, and works in management. He is an
active member of his religious group.
c. Candy is a member of designated group and has been with the organization for 25 years as a telephone
receptionist. She knows everyone and is very popular due to her friendliness and great memory.
d. Antonia, who has been with the organization for 15 years, is very interested in becoming the employment
equity representative because she is very organized and wants an opportunity to demonstrate this to
management so she can be considered for a promotion.
ANSWER: a
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25. Which term refers to a snapshot of the organization that includes where members of designated groups are
employed, their salaries, and their status?
a. stock data
b. HR spreadsheet
c. flow data
d. employer profile
ANSWER: a
26. What is another term used for unintentional discrimination by organizations?
a. overt discrimination
b. job-related discrimination
c. systemic discrimination
d. personal discrimination
ANSWER: c
27. Which of the following is done during the data collection phase for employment equity purposes?
a. voluntary self-identification
b. mandatory self-identification
c. surveys of similar employers
d. surveys of supervisors
ANSWER: a
28. A key goal of employment equity is to ensure that an organization has a representative workforce. What does
“representative” mean in this context?
a. when there are equal numbers of all groups represented in all jobs
b. when there are equal numbers of the four designated groups in the organization
c. when males and females are equally represented
d. when the organization’s workforce reflects the demographic composition of the external workforce
ANSWER: d
29. Phil’s Antique Superstore is hiring ten new customer service agents. All three of Phil’s stores are housed in historic
landmark buildings that are “heritage” sites and do not have wheelchair ramp access. What is this an example of?
a. a systemic barrier
b. the need for special measures
c. lack of reasonable accommodation
d. the duty to accommodate
ANSWER: a
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30. Which of the following recruiting methods is very susceptible to creating systemic discrimination?
a. word-of-mouth
b. online ads
c. ads in widely circulated newspapers
d. ads in community newspapers
ANSWER: a
31. Implementing a flexible work schedule is an example of which of the following?
a. reasonable accommodation
b. a special measure
c. an employment equity goal
d. a workplan
ANSWER: a
32. Which organizational situation best represents the principle of the duty to accommodate?
a. renovating so that the building has wheelchair access, even if it is through a rear-entrance loading dock
b. equipping washrooms with lower mirrors and faucets, and wider doors
c. having regular employee surveys for disabled employees to ensure their needs are met
d. following the uniform guidelines for accommodation
ANSWER: b
33. When is an organization’s workforce “representative”?
a. when it reflects an improvement from the previous year’s results
b. when numerical goals have been established
c. when it reflects the demographic composition of the external workforce
d. when the process used to hire is similar across all units
ANSWER: c
34. What is the first step for the establishment of a workplan for the development of an employment equity program?
a. doing a job analysis
b. examining the workforce analysis
c. developing a strategic plan
d. setting numerical goals
ANSWER: b
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35. Ross Metals Inc. is claiming that it would cost the organization more than half its revenues to build a ramp to
accommodate one of its employees with a disability. What is likely the argument Ross Metals Inc. is making to seek
exemption from the duty to accommodate?
a. undue hardship to the employer
b. going out of business
c. incompatibility with the law
d. sale of business
ANSWER: a
36. Once an employment equity program has been implemented, what is the most important thing to do?
a. evaluate and monitor it closely
b. keep up to date on new developments and laws in employment equity
c. inform the CHRA of progress
d. limit revisions to the program to one per year
ANSWER: a
37. What are two sources of the employer’s duty to prevent sexual harassment?
a. human rights legislation and employment standards legislation
b. pay equity legislation and common law obligations
c. pay equity legislation and common law obligations
d. human rights legislation and common law obligations
ANSWER: d
38. Which of the following is true in terms of the relationship between employment equity and diversity management?
a. The terms are used interchangeably as they are the same.
b. Diversity management goes beyond the four groups covered in employment equity.
c. The focus of diversity management is economic but for employment equity it is morality.
d. Diversity management is more restricted in terms of groups covered.
ANSWER: b
39. An effective sexual harassment policy includes all of the following EXCEPT which one?
a. a comprehensive, well-publicized, organization-wide policy on sexual harassment
b. a formal complaint procedure that spells out the methods used to investigate charges
c. emphasis on follow-up and discipline for supported charges
d. a policy to dismiss any employee accused of sexual harassment
ANSWER: d
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40. The concepts of harassment in the workplace are being broadened to include which one of the following?
a. psychological harassment such as bullying
b. compensation decisions
c. privacy
d. unequal pay for equal work
ANSWER: a
41. Organization Z is planning a formal process of examining its workforce in terms of religion, personality, lifestyle, and
education. The company plans to gain a strategic advantage by harnessing the differences that exist within the
organization. What is Organization Z planning to do?
a. implement an employment equity program
b. implement a pay equity program
c. initiate a cultural assessment
d. employ diversity management
ANSWER: d
42. Proponents of diversity management contend that diversity-related initiatives can help Canada with enlarging its
global markets. What is this argument an example of?
a. reverse discrimination
b. the business case
c. reasonable accommodation
d. employment equity
ANSWER: b
43. Which of the following is an important reason behind implementing a diversity initiative?
a. to help train organizational leaders
b. to avoid human rights complaints
c. to comply with Canadian legal requirements in relation to pay
d. to capitalize on emerging markets around the world
ANSWER: d
44. Which of the following is NOT true in relation to diversity management?
a. It is broad and inclusive.
b. It has economic benefits.
c. It requires top leadership support for its success.
d. It is the same as employment equity.
ANSWER: d
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45. What are the primary business reasons for diversity management?
a. acting in accordance with CHRA legislation; better utilization of talent; better teamwork; better marketplace
understanding; better leadership
b. enhanced creativity; better synergy; better utilization of talent; better leadership; better teamwork
c. acting in accordance with CHRA legislation; better utilization of talent; better leadership; better work ethic;
better marketplace understanding
d. better utilization of talent; better marketplace understanding; enhanced creativity; better leadership; better
teamwork
ANSWER: d
Scenario 3.1
The Furniture Emporium Inc. is a Canadian-based international manufacturer and distributor of high-end furniture for
offices and homes. Since 2010, it has been expanding into the emerging markets across the globe. The company’s
workforce is representative of the population. As well, women make up 58 percent of the company’s workforce.
However, while these groups are well represented in the organization, they are not seen in the same percentage as a
part of the senior management structure of the organization. While Furniture Emporium hires for diversity, it does not
use its employees’ diverse skills and abilities to enhance its global potential, given the international nature of its
business.
46. Refer to Scenario 3.1. Which of the following is a good way for Furniture Emporium to gain a strategic and
competitive advantage, through its employees, in the international furniture market?
a. hire for diversity
b. ensure pay equity is implemented
c. manage diversity effectively
d. promote employees from the designated groups
ANSWER: c
47. Refer to Scenario 3.1. Which of the following accurately represents diversity management if Furniture Emporium
were to use it as a strategic tool?
a. It is required by law in Canada.
b. It is a big part of managing human resources.
c. It is relatively simple and requires little time to implement.
d. It can be a complex and lengthy process to embark on.
ANSWER: d
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48. Refer to Scenario 3.1. Why can the ethnic groups help Furniture Emporium leverage its diverse workforce to gain
competitive advantage?
a. They are easier to work with.
b. They possess knowledge of foreign cultures and business practices.
c. They are time-oriented.
d. They are performance driven.
ANSWER: b
49. Refer to Scenario 3.1. By strategically incorporating a diverse workforce into all levels of the organization, what can
Furniture Emporium benefit from?
a. increased profitability and share prices
b. employee loyalty and retention
c. the spending power of these groups
d. the diverse educational background of these groups
ANSWER: c
50. Refer to Scenario 3.1. If Furniture Emporium wants to create an environment for success in the international
furniture market by leveraging their employees, what do they need to fully understand?
a. the need for a systematic approach to managing diversity
b. how to reward their executives for success
c. how to incorporate short-term diversity initiatives
d. employment equity legislation
ANSWER: a
Scenario 3.2
Metro Business is a growing firm located in Calgary, Alberta. The CEO, Niri Malo, has noticed that most of the
recent applications for positions in the organization are self-identified persons from the four designated groups
covered by employment equity legislation in Canada. Ms. Malo has heard of the benefits of a diversity workforce
and wants to implement an employment equity plan. She understands, however, that there may be challenges in
implementing it.
51. Refer to Scenario 3.2. What is one reason for Metro Business to have an employment equity plan?
a. They would like access to the Federal Contractors Program.
b. It is required for all firms in Canada.
c. It will address pay equity problems.
d. It will prevent racism in the organization.
ANSWER: a
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52. Refer to Scenario 3.2. What is the first step in establishing the employment equity plan at Metro Business?
a. collecting data on Metro’s demographics
b. ensuring senior management commitment
c. ensuring reasonable accommodation
d. getting the government’s approval
ANSWER: a
53. Refer to Scenario 3.2. Which of the following is NOT one of the four designated groups covered by the federal
Employment Equity Act?
a. Aboriginals
b. persons with disabilities
c. Women
d. war veterans
ANSWER: d
54. In Canada, the four designated groups that have not received equitable treatment in employment are women,
Aboriginal people, people with disabilities, and visible minorities.
a. True
b. False
ANSWER: True
55. Women are underrepresented as technicians and semi-skilled professionals.
a. True
b. False
ANSWER: True
56. The four traditionally disadvantaged groups could be brought into the mainstream of Canada’s labour force through
employment equity.
a. True
b. False
ANSWER: True
57. Recent statistics indicate that visible minorities are lacking in educational qualifications, which has resulted in their
high unemployment rates.
a. True
b. False
ANSWER: False
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58. Employment equity makes good business sense since it contributes to the bottom line.
a. True
b. False
ANSWER: True
59. Human rights legislation is the cornerstone of equity legislation.
a. True
b. False
ANSWER: True
60. The Charter of Rights and Freedoms guarantees the right to bargain collectively and to strike.
a. True
b. False
ANSWER: False
61. Federal law prohibits discrimination based on sexual orientation.
a. True
b. False
ANSWER: True
62. Every workplace in Canada is covered by human rights legislation.
a. True
b. False
ANSWER: True
63. The only difference between federal and provincial human rights laws is that the former cover federally regulated
industries and the latter cover provincially regulated industries.
a. True
b. False
ANSWER: False
64. Prohibited grounds of discrimination in employment vary between provinces.
a. True
b. False
ANSWER: True
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65. Prohibited grounds of discrimination in employment include race, religion, sex, age, national or ethnic origin, disability,
and marital status.
a. True
b. False
ANSWER: True
66. Employers are permitted to discriminate if there is a bona fide occupational qualification.
a. True
b. False
ANSWER: True
67. A religious organization is permitted to discriminate on the basis of religion.
a. True
b. False
ANSWER: True
68. An example of a BFOQ for age is the argument that a younger employee will project a better, more energetic image
to the public.
a. True
b. False
ANSWER: False
69. The Canadian Human Rights Commission (CHRC) may choose to act on its own if it feels there are sufficient
grounds for a finding of discrimination.
a. True
b. False
ANSWER: True
70. The Canadian Human Rights Commission (CHRC) must accept all complaints except those not filed within a
prescribed period of time.
a. True
b. False
ANSWER: False
71. Once a complaint has been accepted by the Canadian Human Rights Commission (CHRC), an investigator is
assigned the task of fact finding from both the complainant and the accused.
a. True
b. False
ANSWER: True
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72. As an HR professional, if you lie or are otherwise involved in obstructing an investigation by the Canadian Human
Rights Commission, you can serve jail time.
a. True
b. False
ANSWER: True
73. Pay equity law makes it illegal for employers to discriminate against individuals on the basis of job content.
a. True
b. False
ANSWER: True
74. In 2002, women aged 15 and over who had employment income made 55 cents for every $1 earned by their male
counterparts.
a. True
b. False
ANSWER: False
75. Pay equity is based on the principles of equal pay for equal work and equal pay for work of comparable worth.
a. True
b. False
ANSWER: True
76. Implementation of pay equity is based on comparing the work of female and male employees doing the same job.
a. True
b. False
ANSWER: False
77. The federal pay equity legislation applies to all employees in Canada.
a. True
b. False
ANSWER: False
78. The Employment Equity Act of 1995 only affects employers under federal jurisdiction.
a. True
b. False
ANSWER: True
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79. The Employment Equity Act stipulates that employers and Crown corporations with 200 employees or more, who
are regulated under the Canada Labour Code, must implement employment equity and report on results attained.
a. True
b. False
ANSWER: False
80. The concept of employment equity is rooted in the federal Charter of Rights and Freedoms, and in federal and
provincial human rights codes.
a. True
b. False
ANSWER: True
81. Employment equity involves the identification and removal of systemic barriers to employment opportunities that
adversely affect the four designated groups.
a. True
b. False
ANSWER: True
82. Employment equity involves the implementation of special measures and reasonable accommodation.
a. True
b. False
ANSWER: True
83. Federally regulated employers are required to conduct a workforce analysis to identify underrepresentation of
members of designated groups.
a. True
b. False
ANSWER: True
84. Firms under provincial jurisdiction with 100 or more employees, wishing to bid for goods and services contracts with
the federal government valued at $200 000 or more, must implement an employment equity plan.
a. True
b. False
ANSWER: True
85. Under the Canadian Human Rights Act, the Canadian Human Rights Commission is authorized to prohibit
discrimination against members of the designated groups in the establishment of federally regulated businesses.
a. True
b. False
ANSWER: True
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86. Employment equity involves changing the composition of an organization’s workforce to better reflect the workforce.
a. True
b. False
ANSWER: True
87. An employment equity program is a process requiring senior management commitment and involvement.
a. True
b. False
ANSWER: True
88. Employers covered by the federal Employment Equity Act are required to consult with designated employees’
representatives or, in a unionized setting, with bargaining agents.
a. True
b. False
ANSWER: True
89. The labour movement in Canada has generally been opposed to the concept of employment equity.
a. True
b. False
ANSWER: False
90. The first step in the implementation of employment equity is data collection and analysis.
a. True
b. False
ANSWER: False
91. The development of an external workforce profile is an important tool in employment equity planning.
a. True
b. False
ANSWER: False
92. Concentration occurs when the numbers of a protected class in a particular occupation or level are high relative to
their numbers in the labour market.
a. True
b. False
ANSWER: True
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93. An employer should try to eliminate unintentional discrimination, but is not legally accountable for such discrimination.
a. True
b. False
ANSWER: False
94. Reasonable accommodation involves making changes to the workplace so that no individual is disadvantaged with
respect to employment.
a. True
b. False
ANSWER: True
95. Targeted recruitment aimed primarily at correcting employment inequities is an example of a special measure
designed to accelerate the entry and promotion of members of designated groups discriminated against in the past.
a. True
b. False
ANSWER: True
96. Reasonable accommodation benefits all employees.
a. True
b. False
ANSWER: True
97. The overall goal for an organization with respect to employment equity is to achieve a workforce representative of
the demographic composition of the external workforce.
a. True
b. False
ANSWER: True
98. According to one study, only one of every ten Canadian women who suffer sexual harassment at work takes any
formal action.
a. True
b. False
ANSWER: False
99. An example of sexual harassment is having to listen to comments made by co-workers about their sexual conquests
every Monday morning even when you have told them that their remarks make you extremely uncomfortable.
a. True
b. False
ANSWER: True
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100. Employers are guilty of sexual harassment if they permit their customers to sexually harass their employees.
a. True
b. False
ANSWER: True
101. The main cost of sexual harassment in the workplace is legal settlements
a. True
b. False
ANSWER: False
102. The concept of harassment has been broadened to include bullying in at least one provincial jurisdiction.
a. True
b. False
ANSWER: True
103. The optimization of an organization’s multicultural workforce in order to reach business objectives is known as
diversity management.
a. True
b. False
ANSWER: True
104. Managing diversity is primarily a moral issue.
a. True
b. False
ANSWER: False
105. Transforming an organizational culture into a culture that embraces diversity is relatively simple and can be done in a
relatively short period of time.
a. True
b. False
ANSWER: False
106. Diversity initiatives should be directly linked to the business objectives of top management.
a. True
b. False
ANSWER: True
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107. Leadership is one of the key variables in a firm’s ability to incorporate the value of diversity into its business strategy.
a. True
b. False
ANSWER: True
108. Diversity initiatives are most successful when they are perceived to be human resources programs.
a. True
b. False
ANSWER: False
109. A crucial element of any diversity management initiative is proper training across the organization.
a. True
b. False
ANSWER: True
110. What are some of the disadvantages in employment faced by the four designated groups in Canada?
ANSWER: There are four designated groups in Canada that have not received equitable treatment in employment:
(1) women, (2) Aboriginal peoples, (3) people with disabilities, and (4) visible minorities.
(1) Women tend to be concentrated in occupations that are accorded lower status and pay.
(2) Many Aboriginal workers are concentrated in low-paying, unstable employment.
(3) The unemployment rate for employable people with disabilities is much higher than the national
unemployment rate. People with disabilities face attitudinal barriers, physical demands that are unrelated
to actual job requirements, and inadequate access to technical- and human-support systems that would
make productive employment possible.
(4) Visible minority groups vary in their labour force profiles; however, studies have shown that Latin
Americans and Southeast Asians experience lower-than-average incomes, higher rates of
unemployment, and reduced access to job interviews, even when they have the same qualifications as
other candidates. Culturally biased aptitude tests, lack of recognition of foreign credentials, and
excessively high language requirements pose systemic barriers for visible minority groups.
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111. What are the steps involved in filing and investigating a human rights complaint?
ANSWER: Individuals under federal jurisdiction have the right to file a complaint with the Canadian Human Rights
Commission (CHRC) if they feel they have been discriminated against on any of the prohibited grounds.
The complainant must first complete a written report describing the discriminatory action. A CHRC
representative reviews the facts and determines if the claim is legitimate. Once a complaint has been
accepted by the CHRC, an investigator is assigned to the case in order to gather more facts, from both
the complainant and the accused. The investigator submits a report to the CHRC, recommending a
finding of either substantiation or non-substantiation of the allegation. If the allegation is substantiated, a
settlement may be arranged in the course of the investigation. If the parties are unable to reach
agreement, a human rights tribunal consisting of up to three members may be appointed to further
investigate the complaint. If the tribunal finds that a discriminatory practice did take place, it may order
the person or organization responsible to compensate the victim. Any person who obstructs an
investigation or a tribunal, or fails to comply with the terms of a settlement, can be fined and/or jailed.
Provincial human rights laws are enforced in a very similar manner. Individuals who feel they have been
discriminated against on any of the prohibited grounds file a written complaint with the applicable human
rights commission, which then investigates the claim. The majority of cases are resolved at the
investigation stage. If agreement cannot be reached, the case is presented to the province’s human rights
commission. The members of the commission study the evidence and then submit a report to the minister
in charge of administering the human rights legislation. The minister may appoint an independent board of
inquiry, which has similar powers to a federal tribunal. Failure to comply with the remedies prescribed by
the board of inquiry may result in prosecution in provincial court.
112. What can employers do to deter sexual harassment?
ANSWER: Employers must develop an effective sexual harassment policy if they wish to deter sexual harassment.
The policy should be clear and comprehensive, publicizing to all organizational members that sexual
harassment will not be tolerated. Supervisors and managers should be trained to understand human rights
legislative requirements and their role in providing an environment free from harassment. A formal
complaint procedure should be established that allows employees to report harassment occurrences
without fear of retaliation. All charges should be investigated immediately and, if warranted, discipline
should be administered. Cases should be followed up to ensure a satisfactory resolution of the problem.
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Chapter 4 - Job Analysis and Work Design
1. What is a key expected benefit of reengineering and less bureaucracy in organizations?
a. improved access to government programs
b. accelerated decision-making
c. better access to markets
d. better leadership
ANSWER: b
2. What is a position?
a. a group of related activities and duties
b. the different duties and responsibilities performed by one employee
c. a statement of the knowledge, skills, and abilities required to perform work
d. a statement of the tasks, duties, and responsibilities associated with work
ANSWER: b
3. What is a job specification?
a. a statement of the knowledge, skills, and abilities required to perform the job
b. a statement of the tasks, duties, and responsibilities associated with the job
c. a group of related activities and duties
d. the different duties and responsibilities performed by one employee
ANSWER: a
4. Which of the following is an example of a job specification?
a. To be a grocery store cashier, you need to know how to work a cash register, know the rules of the store,
and know basic math.
b. To be a grocery store cashier, you have to deal with the public and be able to stand on your feet for long
hours.
c. A grocery store cashier assists customers in paying for their grocery items and answering questions about
products.
d. A grocery store cashier is responsible for making sure items are bagged or tagged, and that all customers
pay for their items.
ANSWER: a
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5. In a newspaper ad, Company A stated that for the HRIS Supervisor’s job, the following are required: an
appropriate university degree, five years of corporate experience, and working knowledge of statistical analysis
and software.” What are these requirements an example of?
a. a job requirement
b. a job description
c. a position
d. a job specification
ANSWER: d
6. “The IT specialist is responsible for the smooth running of all staff computers” is most likely an excerpt from which
of the following?
a. a job description
b. a job specification
c. a job analysis
d. a job position
ANSWER: a
7. Which of the following would be a useful approach for organizations to use in addressing discrepancies between
the knowledge, skills, and abilities of the jobholder and the KSAs required for the job?
a. rewards
b. corporate reorganization
c. cooperation
d. training
ANSWER: d
8. If the criteria used to evaluate employee performance are vague and not job related, what is the most likely result?
a. The organization can be charged with unfair discrimination.
b. The organization can suffer productivity losses.
c. The organization can suffer from bad publicity.
d. The organization can suffer from lack of trust and commitment from employees.
ANSWER: a
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9. There could be legal challenges if specific performance requirements of a job are not based on which of the
following?
a. best practices in industry
b. peer evaluations
c. interview data
d. valid job-related criteria
ANSWER: d
10. Why is job analysis considered the cornerstone of HRM?
a. because the information collected serves many HRM functions
b. because it is done in a scientifically sound and valid way
c. because the information comes from job incumbents who know the job the best
d. because it is required by law
ANSWER: a
11. What is a key advantage of division of labour in organizations?
a. improved efficiency
b. less need for managers
c. greater creativity
d. increased employee autonomy
ANSWER: a
12. What is the ultimate purpose of job analysis?
a. to make sure that societal decisions are fair
b. to increase performance and productivity of the organization
c. to have a sense of what employees should be or are doing in their jobs
d. to organize work in a meaningful way
ANSWER: b
13. Which of the following is most correct when it comes to job analysis?
a. Artificial inflation of job duties must always be double-checked against the NOC.
b. A job analyst must weigh information obtained from the NOC above incumbent data.
c. A job analyst must weigh manager information more heavily than job incumbent data.
d. More information about the job is always better.
ANSWER: d
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14. What is a key objective of the National Occupational Classification compiled by the federal government?
a. It helps to speed up audits by the government.
b. It allows for greater uniformity of job titles and job descriptions across the country.
c. It serves as the base for the Job Classification Guide.
d. It transforms career planning.
ANSWER: b
15. Which of the following is NOT a method to conduct job analysis?
a. task inventory development
b. the critical incident method
c. the position analysis questionnaire
d. divisional job analysis
ANSWER: d
16. In doing its job analyses, ABC Company, interviews its accountants on the factors that contribute to their success
as accountants in the firm. Which job analytic technique is being used by the company?
a. competency-based analysis
b. task inventory analysis
c. critical incident method
d. the position analysis questionnaire
ANSWER: c
17. Sally is interviewing an employee, asking him to describe his job, how it is performed, what work is done, and
what tools and equipment are used. What style of job analysis is Sally performing?
a. the critical incidents style of job analysis
b. the task analysis style of job analysis
c. the PAQ style of job analysis
d. the occupation classification style of job analysis
ANSWER: a
18. Which of the following job analysis methods utilize “interviews”?
a. critical incidents, PAQ, and competency-based analysis
b. critical incidents and competency based analysis
c. task analysis and competency-based analysis
d. PAQ, task analysis, and critical incidents
ANSWER: b
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19. What do we call an analysis in which the emphasis is placed on characteristics of successful performers rather than
standard duties?
a. a person-based job analysis
b. a competency-based analysis
c. a performance-based job analysis
d. a team-based analysis
ANSWER: b
20. What is the most important difference between competency-based analysis and all other forms of job analysis
discussed in the textbook?
a. Competency-based analysis is better at keeping pace with the quickly changing nature of work.
b. Competency-based analysis relies solely on information obtained from job incumbents.
c. Competency-based analysis focuses on how the job is currently done.
d. Competency-based analysis requires a very high degree of training on the part of the analyst.
ANSWER: a
21. What can result from generically written job descriptions?
a. restructuring
b. openness to change
c. role ambiguity
d. role precision
ANSWER: c
22. Kirk is learning a new job by watching his co-workers and asking questions. He notices that some of his co-
workers stress the importance of certain tasks, while others don’t do these tasks at all. This has left Kirk
somewhat stressed by what he should and should not be doing in his new role. What does Kirk need?
a. a job description
b. a job analysis
c. information from the NOC
d. job specifications
ANSWER: a
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23. As part of its restructuring efforts, XYZ Company is redesigning its jobs. What should be a basic consideration in
this process?
a. the impact on the environment
b. the costs to restructure
c. the costs to restructure and the benefits of redesigned jobs
d. the organizational objectives the job was created to fulfill
ANSWER: d
24. What is the main difference between job analysis and job design?
a. Job analysis looks at jobs as they currently are; job design is about reorganizing work.
b. Job analysis is required to ensure that HR functions are based on sound and valid data; job design is
focused on compensation and the financial worth of the work.
c. Job analysis is a process; job design is a function.
d. Job analysis is the study of jobs as currently performed; job design is concerned with changing job
structures to improve efficiency.
ANSWER: d
25. In which situation would a job design be recommended?
a. New technology has drastically changed the way that work is done in a manufacturing plant shop floor and
employees are finding there is a lot more spare time.
b. Due to a recent change in upper management and benefit policies, several hundred highly skilled employees
have recently left the organization and moved to a competitor.
c. The culture of the organization is deemed by an external consultant to be “stagnant” and in need of a
change.
d. Members of the organization are trying to form a union.
ANSWER: a
26. In discussing how jobs can be enriched, Frederick Hertzberg suggested several factors that can help in this
process. Which of the following is NOT one such factor?
a. increasing the level of difficulty of the job
b. allowing employees to retain more authority over work outcomes
c. adding new tasks to the job that require employee growth
d. increasing the pay for work done
ANSWER: d
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27. An owner of a mall-based retail shop chain has asked front-line sales associates to attend a twice-yearly all-day
meeting where they share ideas about possible new products, innovations, and ideas about improving work flow.
What is the owner most likely attempting to implement?
a. job involvement
b. job enrichment
c. brainstorming
d. a culture audit
ANSWER: b
28. Which of the following is an accurate description of the five core job dimensions of Hackman and Oldham’s job
characteristics model?
a. skill variety, task identity, task significance, autonomy, and feedback
b. feedback, task identity, job identity, skill variety, and autonomy
c. autonomy, feedback, job security, task identity, and skill variety
d. skill variety, task identity, job security, autonomy, and feedback
ANSWER: a
29. What factors does Herzberg describe as key to enriching jobs?
a. pay, promotion, pension, purpose, and perks
b. achievement, recognition, growth, responsibility, and performance of the whole job
c. safety needs, social needs, self-esteem needs, and self-actualization
d. skill variety, task identity, task significance, autonomy, and feedback
ANSWER: b
30. According to the work of Herzberg, which of the following methods can managers use to enrich the jobs of
employees?
a. improving pay
b. increasing benefits
c. adding more responsibility to jobs
d. improving leadership
ANSWER: c
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31. ABC Inc. wants to enrich its jobs vertically. Which of the following can this be accomplished through?
a. forming teams that have greater authority for self-management
b. providing performance results to employees
c. assigning less work to each employee
d. increasing salaries and benefits for employees
ANSWER: a
32. According to the job characteristics model, what three psychological states of a jobholder result in motivated,
satisfied, and productive employees?
a. meaningfulness of work, responsibility for completion of a whole identifiable piece of work, and knowledge
of work results
b. meaningfulness of work, task significance, and autonomy
c. meaningfulness of work, responsibility for outcomes, and fair compensation
d. meaningfulness of work, responsibility for outcomes, and knowledge of work results
ANSWER: d
33. Behavioural-based job design studies focus on two key simultaneous outcomes. What are these?
a. organizational efficiency and employee job satisfaction
b. organizational efficiency and effectiveness
c. organizational restructuring and job design
d. employee autonomy and job design
ANSWER: a
34. What is often cited as the most important factor contributing to the success of employee involvement groups?
a. team pay and benefits
b. appropriate job design
c. organizational design
d. comprehensive training of employees
ANSWER: d
35. Employee empowerment is a technique of involving employees in their work through which of the following
processes?
a. development
b. inclusion
c. team building
d. banding
ANSWER: b
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36. Which organizational situation is most likely to result in employees who feel most empowered?
a. The employees are allowed to set their own work schedules so they can have better work–life balance.
b. The employees are allowed to spend a few minutes every day coming up with creative ideas for the
suggestion box.
c. The employees have access to sensitive information so they can make more informed decisions about their
work.
d. The employees have a large training budget and they are allowed to spend their training dollars on courses
they choose and as they see fit.
ANSWER: c
37. What is the concept called when “the interaction and outcome of team members are greater than the sum of their
individual efforts”?
a. optimal performance
b. positive culture
c. energy
d. synergy
ANSWER: d
38. What two characteristics do group/team techniques have in common?
a. enhancing collaboration and increasingsynergy
b. enhancing collaboration and improving morale
c. improving morale and increasing synergy
d. enhancing communication andincreasing synergy
ANSWER: a
39. Which of the following is an example of an employee involvement group?
a. a group of employees who come together once a year to brainstorm new workflow ideas
b. a group of employees who meet after work hours to discuss their interest in hiking and other outdoor
activities
c. a group of employees who are allowed to take specialized training courses in statistical analysis
d. a group of employees who meet weekly to brainstorm a sequel to a popular product line
ANSWER: d
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40. What are the four phases in team development?
a. forming, storming, norming, andperforming
b. forming, norming, performing and dying
c. forming, storming, norming and dying
d. forming, norming, storming and dying
ANSWER: a
41. Which of the following is NOT a synergistic team characteristic?
a. support
b. consensus
c. acceptance
d. agreement
ANSWER: d
42. XYZ Corporation recently formed a team comprising a mix of specialists tasked with the specific objective of
developing a new product. What is this type of team called?
a. a self-directed team
b. a specialist team
c. a cross-functional team
d. a process improvement team
ANSWER: c
43. Team synergy is heightened when team members engage in behaviours such as support, active listening, consensus
decision making, and which of the following?
a. disagreement
b. prioritizing options
c. charismatic leadership
d. unanimity
ANSWER: a
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44. Company A is planning to set up a “virtual team” for a project. Which of the following is the best advice for this
team to be successful?
a. Team members should be selected based on certain personal characteristics such as a collaborative
mindset.
b. All team members should understand advanced computer and telecommunications technology so that
breakdowns in communication do not occur frequently.
c. Team members should all have Skype accounts.
d. Team members should NOT meet in person.
ANSWER: a
45. What is the typical method used by organizations to design compressed work weeks?
a. giving employees the work to do at home
b. giving a free day off
c. increasing the number of hours worked per day
d. giving a week off every month
ANSWER: c
46. Which of the following is a benefit of job sharing?
a. reduced employee layoffs
b. less turnover
c. less absenteeism
d. less conflict
ANSWER: a
47. What do we call the type of work schedule in which employees can adjust their daily starting and quitting times,
provided that they work a certain number of hours per day or week?
a. a compressed workweek
b. a shorter workweek
c. a flextime arrangement
d. an adaptable schedule
ANSWER: c
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48. Which of the following is a downside of job sharing?
a. increased compensation
b. less innovation
c. potential distrust among employees
d. reduced employee appraisals
ANSWER: c
49. What is an important drawback of allowing employees to telecommute?
a. difficulty in developing appropriate performancestandards
b. less work?0?life balance
c. increased work conflict
d. increased absenteeism
ANSWER: a
50. Which of the following is most likely to result in a successful telecommuting situation?
a. The telecommuters have to check in frequently throughout the day to let their managers know exactly what
they are working on and how it is going.
b. The managers who are trained in formalized telecommuting procedures make random calls to the
telecommuters at home to ensure all is going well and work is getting done.
c. The telecommuters are expected to attend regular on-site meetings and are trained in technical aspects of
telecommuting.
d. Telecommuting is only allowed when the work at hand does not involve interaction of any kind.
ANSWER: c
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Scenario 4.1
Mike Brassington is the CEO of Canada Steel, a firm that produces steel products for a global market. To
improve on one of its products that has received some criticisms on its quality, Canada Steel wants to put together
a team that will involve different people in the organization, across different departments, so as to utilize their skills
in a manner that would be more productive than if they worked separately. Mike has two ideas on how to design
these teams. First, he can put together a group of experienced people from different departments (e.g., marketing,
engineering, etc.) to solve the problem (Team 1). Second, he can allow interested employees to have online
discussions voluntarily (Team 2). He also has to decide on how to measure the success of the team’s efforts.
51. Refer to Scenario 4.1. Which of the following occurs when the interaction and outcome of team members is
greater than the sum of their individual parts?
a. job sharing
b. cooperation
c. synergy
d. team enrichment
ANSWER: c
52. Refer to Scenario 4.1. What is the term for the first type of team Mike is considering, where he will put together
different people from different units (Team 1)?
a. a self-directed team
b. a process improvement team
c. a virtual team
d. a quality improvementteam
ANSWER: b
53. Refer to Scenario 4.1. According to the textbook, what is a potential challenge for Team 1?
a. different cultures among group members
b. leadership support
c. Web/Internet support
d. determining compensation for team accomplishments
ANSWER: d
54. Refer to Scenario 4.1. What does research demonstrate as key to ensuring the success of the team?
a. ensuring a common workplace “language” for team members
b. establishing ground rules to guide the team’s work
c. ensuring cultural cohesion among team members
d. establishing a fair pay system
ANSWER: a
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55. Refer to Scenario 4.1. Which of the following is NOT a way for Mike to measure the success of the team?
a. through the level of cooperation and trust of team members
b. through whether the goals of the team are achieved
c. through the pay increases of the team
d. through the way in which conflicts are resolved
ANSWER: c
Scenario 4.2
CanBank is a new financial institution with a workforce that values work–life balance. The CEO, Aren Ami, wants
to experiment with different work schedules so as to address the needs of the employees. He is considering
several options: a four-day, 40-hour workweek; allowing employees to choose start and end times for the
workday provided they work a certain number of hours per week; allowing two or more employees to perform a
job normally done by one person; and allowing some employees to do work from home that is normally done in
the office. The CEO knows that there are pros and cons of each option that he has to weigh.
56. Refer to Scenario 4.2. What is the term for the option where employees choose start and end times for their
workdays provided they work a specified number of hours in the week?
a. job sharing
b. telecommuting
c. shortened workweek
d. flextime
ANSWER: d
57. Refer to Scenario 4.2. What is the term for the option where employees work four-day, 40-hour workweeks?
a. flextime
b. telecommuting
c. job sharing
d. compressed workweek
ANSWER: d
58. Refer to Scenario 4.2. Which of the following is NOT a reason cited for flextime?
a. improving organizational culture
b. meeting the challenges of age diversity
c. improving customer service by extending operating hours
d. improving quality of employees’ work
ANSWER: a
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59. A job consists of different duties and responsibilities performed by one person.
a. True
b. False
ANSWER: False
60. A statement of the different duties, tasks, and responsibilities of a job is known as a job description.
a. True
b. False
ANSWER: True
61. An example of a job-related specification might be to require three to five years’ experience for a job as senior
compensation analyst.
a. True
b. False
ANSWER: True
62. Discrepancies between knowledge, skills, and abilities (KSAs) and job requirements provide clues to training
needs.
a. True
b. False
ANSWER: True
63. Job analysis is the process of obtaining information about jobs by determining what the duties, tasks, or activities
of those jobs are.
a. True
b. False
ANSWER: True
64. Ultimately, the purpose of job analysis is to value a job and establish its pay rate.
a. True
b. False
ANSWER: False
65. Job analysis is now considered outdated because it can’t keep up with the current state of change in today’s fast-
paced work world.
a. True
b. False
ANSWER: False
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66. Job analysis is an important step toward ensuring an organization’s HR practices are valid and job-related.
a. True
b. False
ANSWER: True
67. To promote uniformity across organizations, the National Occupational Classification should be used as the sole
source for classifying jobs.
a. True
b. False
ANSWER: False
68. The critical incident method focuses on employee behaviours critical to job success.
a. True
b. False
ANSWER: True
69. The critical incidents method of job analysis is based on interviewing the job incumbent/employee.
a. True
b. False
ANSWER: True
70. Common methods of analyzing jobs include interviews, questionnaires, observation, and diaries.
a. True
b. False
ANSWER: True
71. There are many methods of job analysis and many different ways of compiling the data, but all of the methods rely
on some form of employee/job incumbent interview.
a. True
b. False
ANSWER: False
72. Employee interviewing is the most accurate method of job analysis because the employee is least likely to
exaggerate essential job functions.
a. True
b. False
ANSWER: False
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73. The competency-based approach to job analysis focuses on standard job duties, tasks, and the like.
a. True
b. False
ANSWER: False
74. Human resource information systems have limited potential to impact the job analysis process.
a. True
b. False
ANSWER: False
75. The job title is of psychological importance as well as descriptive.
a. True
b. False
ANSWER: True
76. The standard format for job descriptions is contained in the Dictionary of Occupational Titles.
a. True
b. False
ANSWER: False
77. Relying on generic job descriptions tends to reduce role ambiguity.
a. True
b. False
ANSWER: False
78. Most job descriptions include a job title, a job identification section, and a job duties section.
a. True
b. False
ANSWER: True
79. Job specifications usually cover two areas: (1) the skill required to perform the job and (2) the level of autonomy
inherent in the position.
a. True
b. False
ANSWER: False
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80. A problem with job descriptions is that they tend to broaden the scope of activities performed by a jobholder.
a. True
b. False
ANSWER: False
81. When writing a job description, it is essential to use statements that are terse, direct, and simply worded.
a. True
b. False
ANSWER: True
82. Job specifications describe the duties, tasks, and responsibilities performed on the job and therefore play a key
role in performance appraisal.
a. True
b. False
ANSWER: False
83. Job design is concerned with changing, modifying, and enriching jobs in order to capture the talents of employees
while improving performance.
a. True
b. False
ANSWER: True
84. Job design should facilitate the achievement of organizational goals while recognizing the capabilities and needs of
those who are to perform it.
a. True
b. False
ANSWER: True
85. Job design considers organizational objectives, industrial engineering considerations, ergonomic concerns, and job
descriptions.
a. True
b. False
ANSWER: False
86. Job design is concerned with changing, modifying, and enriching jobs in order to capture the talents of employees
while improving performance.
a. True
b. False
ANSWER: True
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87. Job enrichment is a way of increasing employee empowerment.
a. True
b. False
ANSWER: True
88. Job enrichment can improve employee performance in cases of dissatisfaction with pay and benefits.
a. True
b. False
ANSWER: False
89. Job enrichment incorporates the behavioural needs of employees into their jobs.
a. True
b. False
ANSWER: True
90. The real advantage of job enrichment is that it applies to all employees.
a. True
b. False
ANSWER: False
91. The job characteristics model suggests that the motivated, satisfied, and productive employee is one who (1)
experiences meaningful work; (2) experiences responsibility for work outcomes; and (3) has knowledge of the
results of his or her work activities.
a. True
b. False
ANSWER: True
92. In the job characteristics model, skill variety refers to the amount of freedom held by the employee to schedule
work and perform activities.
a. True
b. False
ANSWER: False
93. As a manager, if you designed a job so that an employee could perform the job from beginning to end according
to the job characteristics model, you would be creating task identity.
a. True
b. False
ANSWER: True
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94. Adding more meaningful tasks to an employee’s job in an effort to make it more rewarding is an example of job
enrichment.
a. True
b. False
ANSWER: True
95. Empowerment encourages employees to become innovators and managers of their own work.
a. True
b. False
ANSWER: True
96. Employee empowerment grows in an organizational culture that promotes satisfaction, support, and recognition.
a. True
b. False
ANSWER: True
97. Industrial engineering is a technique of job design that is concerned with efficiency and behavioural considerations
of a job.
a. True
b. False
ANSWER: False
98. All group-based work techniques have two things in common: enhancing communication and increasing synergy.
a. True
b. False
ANSWER: False
99. Employee involvement groups (EIs) are groups of highly trained individuals using consensus decision making to
perform independent job tasks and solve problems.
a. True
b. False
ANSWER: False
100. Inherent in the concept of work teams is that employees, not managers, are in the best position to contribute to
work performance.
a. True
b. False
ANSWER: True
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101. At Eastman Kodak Company, teams are responsible for manufacturing entire product lines. This type of team is
referred to as a “task force.”
a. True
b. False
ANSWER: False
102. Adjustments in work schedules are considered to be a part of job analysis and job design.
a. True
b. False
ANSWER: False
103. Managers cite one of the reasons for implementing compressed workweek schedules as that it can improve
employee job satisfaction and morale.
a. True
b. False
ANSWER: True
104. Employees participate in flextime when they do entirely different jobs on a rotating schedule.
a. True
b. False
ANSWER: False
105. Job sharing is effective for employees who desire to phase in to retirement.
a. True
b. False
ANSWER: True
106. Telecommuting is the use of personal computers, networks, and other communications technology to do work in
the home that is traditionally done in the workplace.
a. True
b. False
ANSWER: True
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107. What is the role of job analysis in HRM, and how does it relate to other HRM functions?
ANSWER: Job analysis involves a systematic process of obtaining information about jobs to determine the duties,
tasks, and activities involved in the job. This information is useful in a variety of HRM functions
including recruitment, selection, training, development, performance appraisal, compensation, and
labour relations.
Job analysis permits HR managers to identify job specifications or qualifications required by the job.
This information enables recruiters to target sources that are most likely to generate qualified
candidates. It also allows HR managers to design appropriate selection programs.
Information provided by job analysis may identify discrepancies between the knowledge, skills, and
abilities of the jobholder and the requirements contained in the specifications for the job. This can
provide clues about training and development needs.
Job analysis reveals the requirements of a job and can serve as a basis for developing criteria to be
used in performance evaluation and determining the relative worth of a job. Job descriptions generated
by job analysis also allow the organization to identify those jobs subject to union jurisdiction.
108. What factors should be considered in designing a job?
ANSWER: Job design is concerned with structuring jobs to improve organizational efficiency and employee job
satisfaction. Considerations should include (1) the organizational objectives the job was created to
fulfill; (2) industrial engineering considerations, including ways to make the job technologically efficient;
(3) ergonomic concerns, including workers’ physical and mental capabilities; and (4) employee
contributions reflected in the participation of employees in making job improvements or enhanced
operational decisions.
109. Discuss the job characteristics that motivate employees.
ANSWER: The job characteristics model proposes that three psychological states—(1) meaningfulness of work,
(2) responsibility for work outcomes, and (3) knowledge of results—result in improved performance
and motivation of workers. The five characteristics that produce these states are:
• Skill Variety: The degree to which a job entails a variety of activities and the use of different skills or
talents by the jobholder.
• Task Identity: The degree to which the job requires the completion of a whole, identifiable piece of
work.
• Task Significance: The degree to which the job has an impact on the lives or work of other people.
• Autonomy: The degree to which the job provides freedom, independence, and discretion to the
jobholder in scheduling and completing the work.
• Feedback: the degree to which the jobholder is given clear information about the effectiveness of his
or her performance.
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110. What are the advantages and disadvantages of flextime or flexible working hours?
ANSWER: Advantages of flextime or flexible working hours include:
• Employers reduce some of the traditional causes of tardiness and absenteeism.
• Employees gain greater job satisfaction through the ability to adjust their work to accommodate their
lifestyle.
• Employees can schedule their working hours for the time of day they are most productive.
• Traffic congestion may be reduced by variations in arrival and departure times.
• Flexible schedules can be helpful in recruiting and retaining personnel.
• They are invaluable to organizations that wish to improve service to customers or clients by
extending operating hours.
Disadvantages of flextime or flexible working hours include:
• Flexible schedules are not suited to some jobs, such as those where specific workstations must be
staffed at all times.
• They can create problems for managers in communicating with and instructing employees.
• They can force managers to extend their workweek to work directly with employees.
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Chapter 5 - Expanding the Talent Pool: Recruitment and Careers
1. Some organizations that want to focus on their core functions, including small businesses that lack time or HR
personnel, sometimes use outside firms for their recruiting functions. What is this process called?
a. delegation of recruiting
b. core function planning
c. recruitment channelling
d. recruiting process outsourcing
ANSWER: d
2. What is the most likely outcome of recruiting from within?
a. It would increase recruiting costs.
b. It would reduce employee motivation.
c. It would inhibit creativity.
d. It would increase an organization’s technology.
ANSWER: c
3. What is the most likely outcome of hiring an external candidate for a position in an organization?
a. It would lead to an increase in information about the market.
b. It would increase morale among executives.
c. It would lead to revitalization of the organization.
d. It would decrease creativity.
ANSWER: c
4. Which of the following is a characteristic of a tight labour market?
a. high unemployment
b. low unemployment
c. declining compensation rates
d. low productivity
ANSWER: b
5. Which of the following is a potential limitation when an organization practises promotion from within?
a. “inbreeding”
b. increased cost-per-hire by using the firm’s job posting system
c. reduced employee morale
d. increased employee turnover
ANSWER: a
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6. ABC Corporation needs a new CEO. What is an important advantage of getting this person externally?
a. It helps to promote outbreeding.
b. It helps the organization maintain a rich organizational culture.
c. It helps to lower initial pay, thus saving on compensation costs.
d. It helps the organization gain access to knowledge from previous employers.
ANSWER: d
7. Which of the following positions would most likely be filled by external candidates?
a. intermediate IT technicians
b. senior accounting clerks
c. supervisors
d. head coaches of professional sports teams
ANSWER: d
8. What determines the effectiveness of a computerized record system (such as SAP and PeopleSoft) for locating
qualified internal job candidates?
a. the extent to which data in the system is kept current
b. the extent to which the system is “user-friendly”
c. the costs for updating the system
d. the availability of the system to line personnel
ANSWER: a
9. Organization W has had an opening in a key managerial role for three weeks, which is viewed as a long time. In
situations like this in the past, Organization W has had to resort to hiring external to the organization, which is less
preferable to the company, in order to fill the position in question. What is Organization W likely suffering from?
a. poor HR planning
b. a weak training and development program in the organization
c. a weak talent bench
d. a lack of value for promotions in the organization
ANSWER: c
10. Trade schools can be a good source for recruits for what types of positions?
a. entrepreneurial and managerial
b. managerial and executive
c. entrepreneurial and executive
d. entry level and highly skilled employees
ANSWER: d
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11. Which of the following groups is most likely to respond to advertisements placed through social media?
a. Generation X
b. Generation Y
c. retirees
d. baby boomers
ANSWER: b
12. Learning in Development (LID) is a high-tech firm that specializes in applications for hand-held devices. It is looking
for a cheap, fast, and effective way of recruiting new candidates. Which strategy would best suit LID?
a. Internet recruiting
b. executive search firms
c. labour unions
d. walk-in job applicants
ANSWER: a
13. Sarah is not actively looking for a job but she could be persuaded to take a new job if given the right opportunity.
What is the term we used to describe Sarah?
a. reluctant candidate
b. job hopper
c. passive job seeker
d. active job seeker
ANSWER: c
14. What is often the greatest criticism of search firms?
a. They allow for too much “inbreeding.”
b. Their clients have to pay them even if the search is unsuccessful.
c. Their search is not sufficiently wide.
d. They attract too many lawsuits.
ANSWER: b
15. Which external recruiting source normally provides applicants who stay with the organization the longest?
a. newspaper ads
b. search firms
c. job fairs
d. employee referrals
ANSWER: d
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Chapter 5 - Expanding the Talent Pool: Recruitment and Careers
16. Which recruitment method is more likely than the others to result in discrimination against members of protected
groups?
a. executive search firms
b. social media
c. employee referrals
d. educational institutions
ANSWER: c
17. What is the key reason why the quality of employee-referred applicants tends to be high?
a. Employees are hesitant to recommend applicants who might not perform well.
b. Employees train the applicants.
c. Employees tend to refer their friends and relatives.
d. Inbreeding improves the quality.
ANSWER: a
18. Which of the following is the most important disadvantage of using employee referrals for recruitment?
a. It makes human resource planning near impossible due to the unpredictable nature of the talent pool.
b. Training recruiters to recognize potential in candidates in this way is difficult and costly.
c. Discrimination may result because people tend to refer others from similar backgrounds.
d. It is likely that individuals will refer weak candidates in order to lessen internal competition for promotions.
ANSWER: c
19. What is a key factor in the success of any employee referral program?
a. measuring results
b. paying employees well for good referrals
c. increasing the visibility of the program
d. ensuring nepotism
ANSWER: a
20. What is the practice of hiring relatives called?
a. insourcing
b. nepotism
c. favouritism
d. inbreeding
ANSWER: b
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21. If you are to offer advice to an employer for an effective newspaper advertisement, which of the following is NOT
something that you should advise?
a. Overlook community newspapers or classified publications that target a specific market segment.
b. Try to be too creative.
c. Provide a lot of information about the position.
d. Mention that the company is an equal opportunity employer.
ANSWER: b
22. Which of the following is an important limitation of using educational institutions for recruitment?
a. The education students receive is not relevant to the workplace.
b. Basing recruitment of candidates on grade transcripts is not a valid selection tool.
c. Recruitment is limited to sales and retail.
d. Candidates generally have limited full-time job experience.
ANSWER: d
23. Which of the following sources of applicants is associated with temporary employees more than the other sources?
a. search firms
b. walk-ins
c. private employment agencies
d. job fairs
ANSWER: c
24. Company A sometimes recruits employees from its network of past employees/alumni. What is this process called?
a. retiree recruiting
b. re-recruiting
c. network recruiting
d. employee leasing
ANSWER: b
25. Which of the following best describes private employment agencies?
a. They commonly provide services only to college graduates.
b. They do not charge a fee for their services.
c. They are administered through the provincial governments.
d. They commonly specialize in providing services for a specific occupational area.
ANSWER: d
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26. Which of the following is NOT a service generally offered by public employment agencies?
a. compensation surveys
b. evaluation programs
c. employment testing
d. apprenticeship programs
ANSWER: a
27. When Mark applied for a job as an engineer in a small town in Northern Canada, he was told that the pay was good,
but that it can be very lonely and cold in the winter. Which of the following approaches to recruiting is the employer
using?
a. realistic job preview
b. balanced scorecard
c. balanced recruiting
d. negative/positive job assessment
ANSWER: a
28. Which organizational situation is most likely to benefit from using realistic job previews?
a. in the financial industry where there are few jobs but the training is arduous and jobs are not very lucrative
despite the promise of wealth in the long run
b. in creative organizations, such as symphony orchestras, where the work is not well paid and the training is
intense
c. in a high-tech organization where despite being in a very competitive industry engineers are allowed to explore
their creative side and are motivated financially to suggest innovative products
d. in a meat-processing plant where the work is very messy, the smell is strong and unpleasant, and a lot of
expensive training is needed to do the job well
ANSWER: d
29. Which of the following is NOT a method generally used to improve the effectiveness of recruitment?
a. surveys
b. yield ratios
c. realistic job previews
d. employment testing
ANSWER: d
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30. In order to identify qualified candidates for the job of “tennis teaching professional,” Canmay Tennis Clubs have job
candidates face a series of situations while they are observed, such as dealing with a series of emails from an
unhappy club client in a difficult situation, role-playing a lesson, and a behavioural interview. Which method of
identifying qualified candidates is Canmay using?
a. in-basket exercises
b. interviewing
c. a work sample
d. an assessment centre
ANSWER: d
31. When Mary was recruited for her position, she was evaluated in a series of situations that resembled what she
would likely experience on the job. Which recruitment method was the employer using?
a. skills inventory
b. management talent inventory
c. assessment centre
d. performance appraisal
ANSWER: c
32. What is the first stage in the career stage model?
a. early childhood
b. organizational entry
c. preparation for work
d. early career
ANSWER: c
33. In identifying career opportunities and requirements within an organization, what is the vital first step?
a. preparing a competency or job analysis
b. preparing performance appraisals of existing staff in those positions
c. ensuring the job progressions within the organization are clear
d. identifying career paths
ANSWER: a
34. Linda has advanced through several roles with increasing responsibilities at ABC Corporation, including HR
assistant, HR generalist, and HR manager. What is the term for this line of advancement?
a. line path
b. career line
c. job line progression
d. career path
ANSWER: d
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35. Which of the following best describes outplacement services?
a. They are useful methods of attracting individuals into a career.
b. They are designed to help terminated employees find a job elsewhere.
c. They are rarely given to executive employees.
d. They are vital parts of any career management system.
ANSWER: b
36. Hamid is a professional engineer. He is not permanently in a management role, but is paid at management rate, and
can choose to take up management roles without sacrificing his engineering role. How would you describe his career
path?
a. complex career path
b. boundaryless career path
c. dual career path
d. divergent career path
ANSWER: c
37. Which of the following best captures the “Peter Principle”?
a. Through natural selection, incompetent employees tend to turn over.
b. When promoting based on past performance and seniority, employees will be promoted regularly until they are
promoted to a position where they cannot perform well.
c. Incompetence breeds incompetence.
d. Managers who are incompetent tend to produce situations where there are more grievances, more voluntary
turnover, more absenteeism, and more harassment.
ANSWER: b
38. Sandeep has been fired from his managerial position. His organization provides services to help him become
employable and find a suitable position elsewhere. What are these services called?
a. coaching
b. mentoring
c. outplacement
d. relocation
ANSWER: c
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39. Which of the following is the best example of a person with a boundaryless career?
a. When Deborah become pregnant with her third child, she decided that working less would be best for her
family. She now shares her job with another person who also works part-time.
b. Yusef quit his job of 10 years to open his own business and work from home. He has the freedom of being his
own boss and being flexible with his schedule.
c. Bill works in a creative role within an organization with a flat structure. In such an organization there are
opportunities to contribute at all levels.
d. Sally has worked for three different organizations in five years. Each time she moves to a new organization,
and usually a higher position, she takes with her the skills and abilities she learned in her previous role.
ANSWER: d
40. Sukhi is an excellent engineer and has been promoted three times within her current organization—she is now at the
top level of engineering. She loves being an engineer, but the organization has now offered her a very lucrative
position as a manager. If she wants to continue to be promoted, the only way is to move into management, since
there are no higher engineering jobs for her. Which of the following programs would benefit Sukhi?
a. a boundaryless career
b. competency analysis
c. dual career tracking
d. a structural career plateau
ANSWER: c
41. Which of the following refers to those artificial barriers based on attitudinal or organizational bias that prevent
qualified individuals from advancing upward in their organizations into management positions?
a. artificial barriers
b. the glass floor
c. the job plateau
d. the glass ceiling
ANSWER: d
42. ABC Corporation identifies the top 10 of its junior engineers and allows them to select a top executive to work with
on their career development, including goals, expectations, and standards. How would you describe the resulting
relationship between the executive and the junior engineer?
a. formal mentoring
b. controlled development
c. dual career planning
d. career networking
ANSWER: a
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43. Luba is developing a mentoring program for her organization. She has put a great deal of effort into making sure that
all protégés are matched demographically with their mentor (gender, race, etc.), educating participants about facts
such as the reciprocal nature of the relationship, and that the relationship can be used for personal and professional
development. In her plans, which myth about mentors has Luba fallen victim to?
a. A mentor has to be the same gender and race as the protégé.
b. Mentoring should focus on the professional and not the personal.
c. Although mentoring can be reciprocal, that is just a by-product. The focus should be on the protégé.
d. Highly profiled people make the best mentors.
ANSWER: a
44. Which of the following is NOT a factor included in a self-evaluation for successful career development?
a. your interests
b. academic achievement
c. academic aptitude
d. organizational opportunities for advancement
ANSWER: d
Scenario 5.1
Beloitte Industries Inc. (BI Inc.) has been one of Canada’s leading financial advisory firms for over 50 years.
Staffed by roughly 4000 employees in most major cities across the country, BI Inc. prides itself on hiring recent
graduates from renowned business schools and offering them competitive salaries, excellent benefits and perks, and
limitless training and development opportunities. Employees also have the opportunity to work from home a couple
days a week. Over the years, the company realized that while it has no problems recruiting top candidates to the
firm, it is having a harder time retaining them. Exit surveys reveal that while employees appreciate all the perks,
benefits, and top salaries that attracted them to the organization, they are not able to enjoy them due to six-day
workweeks and 14-hour days, leaving very little time for friends and family. They did not know of these work
situations when they were hired.
45. Refer to Scenario 5.1. BI Inc.’s problems stem from which of the following?
a. not providing all the realities of the job when hiring
b. lack of flexibility for employees
c. too many unexpected surprises
d. providing unrealistic rewards
ANSWER: a
46. Refer to Scenario 5.1. Which of the following is helpful in achieving retention at BI Inc.?
a. highlighting only the positive aspects of the job when hiring
b. not providing a tour of the working facility during the recruitment process
c. providing a recruitment package that covers desirable and undesirable attributes
d. discussion of how to compensate for any negative consideration
ANSWER: c
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47. Refer to Scenario 5.1. Adopting a realistic job preview at BI Inc. can lead to which of the following?
a. turnover of employees who are more driven by the money
b. better job satisfaction and lower turnover
c. inaccurately reflecting the culture for which the candidate is signing up
d. negative effect on the socialization process
ANSWER: b
Scenario 5.2
Star Bright Consulting, a Canadian private employment agency specializing in IT staffing, has been successfully
providing qualified IT employees to various firms in the Greater Toronto Area. Recently, the agency has been
experiencing problems with its selection process. Primarily, the agency’s clients are not happy with the length of time
it takes to fill positions that become available. Even though Star Bright has been successful over the years, it is not
fully leveraging technology to aid in its recruitment and selection efforts.
48. Refer to Scenario 5.2. Which of the following can be used to speed up the recruitment process while providing
valuable information such as time and costs related to hiring?
a. quality of fill statistics
b. online software application
c. leveraging technology
d. applicant tracking system
ANSWER: d
49. Refer to Scenario 5.2. Which of the following is not useful in assisting Star Bright with efforts to improve its
recruitment and selection process?
a. yield ratio
b. time to fill a position
c. realistic job preview
d. cost per hire
ANSWER: c
50. Refer to Scenario 5.2. Which of the following tools can Star Bright use to promote the IT careers it offers?
a. blogs and articles in industry publications
b. chat lines in cyberspace
c. an intranet where positions can be quickly viewed and applied for
d. links to current employees’ Facebook profiles
ANSWER: a
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51. A recruiting strategy that works for one form might not work for another.
a. True
b. False
ANSWER: True
52. The effectiveness and attractiveness of recruiters is often a main reason why applicants select one organization over
another.
a. True
b. False
ANSWER: True
53. In addition to the positive morale benefits, recruiting from within the organization also attempts to capitalize on HR
and human capital investments.
a. True
b. False
ANSWER: True
54. Excessive reliance upon internal sources can create the risk of employee cloning.
a. True
b. False
ANSWER: True
55. In many cases, hiring someone from outside is seen as essential for revitalizing the organization.
a. True
b. False
ANSWER: True
56. The best source for recruitment will vary depending on the industry.
a. True
b. False
ANSWER: True
57. When unemployment levels are low, employers may need to use more sources of recruitment.
a. True
b. False
ANSWER: True
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58. Organizations tend to integrate their promotion-from-within policy and their employment equity programs.
a. True
b. False
ANSWER: True
59. Job posting and bidding can be done via electronic bulletin boards or on regular bulletin boards, employee
publications, special handouts, direct mail, and public address messages.
a. True
b. False
ANSWER: True
60. Recruiters usually have minimal influence on an applicant’s decision to work for one organization or another.
a. True
b. False
ANSWER: False
61. A recruiter’s job is to “sell” applicants on the organization, but they have no influence on their decision.
a. True
b. False
ANSWER: False
62. At least one research study has found that managers often hire external candidates rather than promote their current
employees because they have a tendency to overvalue unfamiliar candidates and undervalue known ones.
a. True
b. False
ANSWER: True
63. Human resources information systems can be used to predict the career paths of employees.
a. True
b. False
ANSWER: True
64. The most common method used by job searchers is responding to printed advertisements.
a. True
b. False
ANSWER: False
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65. Skill inventories are an important tool for succession planning.
a. True
b. False
ANSWER: True
66. Placement is the process of attempting to locate and encourage potential applicants to apply for existing or
anticipated job openings.
a. True
b. False
ANSWER: False
67. Advertisements can allow selectivity in attracting applicants.
a. True
b. False
ANSWER: True
68. There is a correlation between the accuracy and completeness of an advertisement and recruitment success.
a. True
b. False
ANSWER: True
69. Often, applicants will respond to an advertisement even if they don’t meet the job requirements.
a. True
b. False
ANSWER: True
70. The most commonly used search tactic for job seekers is Internet recruiting.
a. True
b. False
ANSWER: True
71. Applicants who find employment through an employee referral tend to be a problem because they tend to quit more
often.
a. True
b. False
ANSWER: False
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72. Nepotism is a problem with executive search firms.
a. True
b. False
ANSWER: False
73. Educational institutions are typically a source of young applicants with formal training but relatively little full-time
work experience.
a. True
b. False
ANSWER: True
74. Recruiters sent to university and college campuses must be properly trained and prepared to talk to candidates about
their company and job requirements of specific openings.
a. True
b. False
ANSWER: True
75. For technical and managerial positions, community colleges are generally the primary source of recruitment.
a. True
b. False
ANSWER: False
76. Public employment agencies work closely with private employment agencies.
a. True
b. False
ANSWER: False
77. Private employment agencies often specialize in particular occupations or professions.
a. True
b. False
ANSWER: True
78. Labour unions can be a recruiting source for some professional job openings.
a. True
b. False
ANSWER: True
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79. The realistic job preview informs applicants about all aspects of the job, including both its desirable and its
undesirable facets.
a. True
b. False
ANSWER: True
80. Realistic job previews reduce turnover, but also reduce job acceptance rates.
a. True
b. False
ANSWER: True
81. Yield ratios can help indicate which recruitment sources are most effective at producing qualified job candidates.
a. True
b. False
ANSWER: True
82. Yield ratios should be calculated for each recruiting source.
a. True
b. False
ANSWER: True
83. An assessment centre is a place where people are evaluated.
a. True
b. False
ANSWER: False
84. It is the responsibility of the organization to supply information about its mission, policies, and plans for providing
support for employee self-assessment, training, and development.
a. True
b. False
ANSWER: True
85. Career management involves a good deal of analysis and planning.
a. True
b. False
ANSWER: True
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86. It is the responsibility of the employee to identify his or her own knowledge, skills, abilities, interests, and values and
to seek out information about career options in order to set goals and develop career plans.
a. True
b. False
ANSWER: True
87. If career development is to succeed, it must receive the complete support of top management.
a. True
b. False
ANSWER: True
88. A common approach to establishing a career development program is to integrate it with the existing HR functions
and structures in the organization.
a. True
b. False
ANSWER: True
89. Some career development paths provide new assignments that increase skill areas and assignments in different
functional areas.
a. True
b. False
ANSWER: True
90. The lines of advancement for an individual within an organization are known as job paths.
a. True
b. False
ANSWER: False
91. Employability refers to the skills and support needed to find a job.
a. True
b. False
ANSWER: True
92. Transfers usually provide the same motivational value as promotions.
a. True
b. False
ANSWER: False
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93. Outplacement services help terminated employees find a job elsewhere.
a. True
b. False
ANSWER: True
94. The placement of an employee in another job at a higher level in the organization with an increase in pay and status
is known as a job rotation.
a. True
b. False
ANSWER: False
95. A dual career path is for couples who are both working professionals in the same field.
a. True
b. False
ANSWER: False
96. Career planning workbooks are popular means of helping employees identify their potential.
a. True
b. False
ANSWER: True
97. Fast-track programs were initiated in some organizations as a way to retain young managers with high potential.
a. True
b. False
ANSWER: True
98. Mentoring functions can be divided into two broad categories: (1) technical development and (2) career planning.
a. True
b. False
ANSWER: False
99. Mentoring is one important indicator of management support in career development.
a. True
b. False
ANSWER: True
100. Mentoring programs develop over time and on an informal basis.
a. True
b. False
ANSWER: True
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101. What are the advantages and disadvantages of internal recruitment?
ANSWER: The use of internal source applicants provides motivation and enhances the morale of the current
workforce by linking performance to rewards. Also, internal applicants are well known to management
and require less training than external applicants. Disadvantages or limitations of internal recruitment
include the inability to be able to fill certain jobs (e.g., jobs that require specialized training or
experience). Internal recruitment may also perpetuate inbreeding of ideas and attitudes. Excessive
reliance on internal sources can create the risk of “employee cloning” and may limit the organization
from gaining knowledge. External source applicants often bring new and innovative ideas to the
workplace. They are less likely to think in the same old ways as current employees. Also, external
candidates can be used to provide knowledge, skills, and abilities that are lacking in the current
workforce.
102. What can managers do to improve the effectiveness of external recruitment?
ANSWER: There are several things that managers can do to maximize the probability of successful external
recruiting. First, managers may calculate yield ratios to help indicate which recruitment sources are most
effective at producing qualified job candidates. Second, the cost of various recruiting procedures can be
computed using a fairly simple set of calculations. Third, managers can take steps to ensure that their
recruiters have a good understanding of the knowledge, skills, abilities, experiences, and other
characteristics required for the job. In addition, it is important to remember that recruiters have an
influence on an applicant’s job decision. Because recruiters can often enhance the perceived
attractiveness of a job and an organization, they are often a main reason why applicants select one
organization over another. Another way organizations may be able to increase the effectiveness of their
recruitment efforts is to provide job applicants with a realistic job preview. A realistic job preview
informs applicants about all aspects of the job, including both its desirable and undesirable facets.
103. Describe the five stages of career development, particularly stages one and two, and briefly describe what stages
three through five have in common.
ANSWER: The first stage, preparation for work, encompasses the period prior to entering an organization, often
extending until age 25. It is a period in which individuals must acquire the knowledge, skills, and abilities
they will need to compete in the marketplace. Careful planning based on sound information should be the
focus.
The second stage, organizational entry, typically from age 18 to 25, is devoted to soliciting job offers and
selecting an appropriate job. During this period, one may also be involved in preparing for work.
The next three stages—early career, midcareer, and late career—entail fitting into a chosen occupation
and organization, modifying goals, making choices, remaining productive, and finally, preparing for
retirement.
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1. When an organization hires a person who is described as high in predicted success and high in job performance,
what do we call that situation?
a. a hit
b. a miss
c. high prediction rate
d. a successful selection system
ANSWER: a
2. Abel scored high on an ability test used to hire him. He, however, turned out to be a poor employee. Which term
refers to this outcome?
a. a hit
b. a miss
c. a poor prediction rate
d. an opportunity cost
ANSWER: b
3. Tom Jones was not selected for a job at ABC Corporation. He was later hired at XYZ Inc. and proved to be an
excellent employee. In terms of the selection decision, how would you describe this outcome?
a. a lost cause
b. an unpredictable miss
c. a predictable miss
d. an opportunity cost
ANSWER: d
4. Organization B is using an interview format that requires a panel of three interviewers. The company has found that
about half of the time, the interviewers disagree in their ratings such that some members of the panel give the
candidate a high rating, while others give the same candidate a low rating. What is the best way to describe the
interview format that Organization B is using?
a. It is not content valid.
b. It is lacking predictive validity.
c. It is not valid.
d. It is not reliable.
ANSWER: d
5. The HR manager and the training manager separately interviewed five applicants for a position. They both ended
scoring the five of them very similarly. What is this result an example of?
a. high concurrent validity
b. high inter-rater reliability
c. high construct validity
d. high inter-personal reliability
ANSWER: b
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6. What do we call the degree to which selection procedures yield comparable data over a period of time?
a. conformity
b. validity
c. reliability
d. consistency
ANSWER: c
7. What do we call the degree to which inferences drawn from interviews, test scores, and other selection procedures
are supported by evidence (such as good job performance)?
a. predictability
b. validity
c. reliability
d. accuracy
ANSWER: b
8. What is a key reason to ensure that selection procedures are valid?
a. to ensure comprehensive training for HR professionals
b. to test reliability
c. because validity guarantees the success of the selection procedure
d. because validity is related to employee productivity
ANSWER: d
9. Which of the following is appropriate to ask on an application form?
a. whether the applicant has prior arrests
b. whether the applicant is eligible to be bonded
c. whether the applicant has ever been in jail
d. whether the applicant has ever been caught stealing
ANSWER: b
10. Which of the following types of interviews allows applicants the most freedom in discussing a response to an
interview question?
a. a structured interview
b. a non-directive interview
c. an open interview
d. a situational interview
ANSWER: b
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11. Organization Beta is hiring 20 new staff for front-line positions. The interview the company is using involves giving
the applicant hypothetical incidents and asking how he or she would respond. What is this type of interview called?
a. a behavioural description interview
b. a panel interview
c. a situational interview
d. a structured interview
ANSWER: c
12. What type of interview provides the greatest consistency or standardization with respect to the questions asked?
a. a structured interview
b. a standardized interview
c. a nondirective interview
d. an unstructured interview
ANSWER: a
13. What type of interview allows the applicant the maximum amount of freedom in determining the course of
discussion?
a. a structured interview
b. a depth interview
c. a situational interview
d. a nondirective interview
ANSWER: d
14. Questions contained in structured job interviews should be based on which of the following?
a. job design
b. job analysis
c. job specialization
d. job knowledge
ANSWER: b
15. Mary was asked a question in an interview about a hypothetical incident and was asked how she would respond to it.
What is this type of interview called?
a. a situational interview
b. a panel interview
c. a mock interview
d. a nondirective interview
ANSWER: a
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16. During an interview, Seema was asked: “Tell me about the last time you helped to train an employee.” What is this
an example of?
a. a nondirective interview question
b. a directive interview question
c. a behavioural description interview question
d. a closed response interview question
ANSWER: c
17. Organization Omega is hiring 20 new front-line employees. The company is using an interview that involves three
people taking turns asking questions and then pooling their scores of the responses. What is this type of interview
called?
a. a behavioural description interview
b. a panel interview
c. a situational interview
d. a structured interview
ANSWER: b
18. Which of the following best describes the use of reference checks?
a. They are no longer used because organizations won’t share information about previous employees for fear of
litigation.
b. Their usefulness is limited because most managers will not share performance data.
c. Some organizations have detailed forms for previous employers to fill out in order to get the best information.
d. New human rights laws prohibit their use.
ANSWER: c
19. Which of the following best describes credit reports?
a. Organizations must advise and receive written consent from the applicant when they request a credit report.
b. Organizations can request a report on any employee at any time without consent.
c. Organizations do not have to inform applicants if adverse decisions are made based on information in the
report.
d. Organizations cannot make adverse decisions based on information in such a report.
ANSWER: a
20. During her interview for a position as a secretary, Nikki was asked to answer a real phone call from a client. The
interviewer used her performance to help with the selection decision. Which of the following types of tests was used
in this instance?
a. a personality test
b. a work sample test
c. an assessment centre test
d. a cognitive ability test
ANSWER: b
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21. What is the GMAT an example of?
a. a work sample test
b. a cognitive ability test
c. a structured ability test
d. an interest inventory
ANSWER: b
22. Which of the following measures mental capabilities such as general intelligence, verbal fluency, numerical ability, or
reasoning ability?
a. a personality and interest inventory
b. a physical ability test
c. a cognitive ability test
d. a job sample
ANSWER: c
23. According to many experts, what are cognitive ability tests are connected to?
a. personality
b. past exposure to a job
c. situational knowledge
d. general intelligence
ANSWER: d
24. Which of the following is a key basis for the use of biodata tests?
a. Family history is important to job success.
b. They are required by law.
c. Past behaviour is the best predictor of future behaviour.
d. There are no right or wrong answers.
ANSWER: c
25. Which of the following do personality tests measure?
a. disposition and temperament
b. likability and attitude to work
c. intelligence and knowledge
d. attitudes and behaviours
ANSWER: a
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26. Which of the following types of tests measure dispositional characteristics such as extroversion, inquisitiveness, and
dependability?
a. mental ability tests
b. cognitive ability tests
c. personality tests
d. biodata tests
ANSWER: c
27. The “Big Five” factors are related to what type of employment tests?
a. cognitive ability tests
b. general intelligence tests
c. personality tests
d. mental awareness tests
ANSWER: c
28. Why would an organization use an integrity test?
a. because even though such tests are not correlated with reduced disruptive behaviours, they have been
correlated with reduced turnover
b. because such tests are designed to identify thieves
c. because these tests not only reduce theft, but also have been shown to have a relationship with performance
on the job
d. because in using an integrity test, you can avoid the use of most other selection tests, since it has been shown
that these are good stand-alone predictors
ANSWER: c
29. What is currently the most effective way to assess a person’s honesty during the selection process?
a. graphology testing
b. polygraph testing
c. integrity testing
d. background testing
ANSWER: c
30. In the “Big Five” personality tests, what is the dimension captured by the degree to which someone is dependable
and organized, and perseveres?
a. conscientiousness
b. agreeableness
c. extroversion
d. dependability
ANSWER: a
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31. Which of the following best describes drug testing in the selection process?
a. It is conducted by very few Canadian organizations
b. It is illegal in Canada.
c. It is required by law.
d. It is conducted in most Canadian workplaces.
ANSWER: a
32. Six months ago, Organization A used a new selection system to hire 100 front-line staff members. With six months of
performance data in hand, Organization A is interested in determining if its new selection system predicts
performance on the job. What is the best way to describe this process?
a. assessing concurrent validity through a cross-validation study
b. assessing concurrent validity through a criterion-related validity study
c. assessing predictive validity through a criterion-related validity study
d. assessing predictive validity through a cross-validation study
ANSWER: c
33. Organization C has developed a new selection system. The company is interested in determining if the system
predicts performance on the job, so Organization C gave the selection tests to 100 existing employees. What is the
best way to describe this process?
a. assessing concurrent validity through a cross-validation study
b. assessing concurrent validity through a criterion-related validity study
c. assessing predictive validity through a criterion-related validity study
d. assessing predictive validity through a cross-validation study
ANSWER: b
34. Which of the following terms refers to the extent to which good performance on an employment selection test
correlates with high marks on a performance review?
a. construct validity
b. content validity
c. criterion-related validity
d. cross-validation
ANSWER: c
35. Giving applicants a clerical aptitude test and then tracking their performance one year later is an example of which
of the following?
a. construct validity
b. concurrent validity
c. content validity
d. predictive validity
ANSWER: d
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36. Validity tests related to such things as intelligence and anxiety typically asses which of the following?
a. criterion validity
b. content validity
c. concurrent validity
d. construct validity
ANSWER: d
37. What do we call the process whereby a test or test battery is administered to a different sample (drawn from the
same population) for the purpose of verifying the results obtained from the original validation study?
a. repeat validation
b. cross-validation
c. construct validation
d. inferential validation
ANSWER: b
38. The “will do” factors of an applicant include which of the following?
a. knowledge and skills
b. cognitive abilities
c. aptitude
d. motivation and interests
ANSWER: d
39. Which of the following conditions represents a test that could be described as “construct valid”?
a. A professor puts one essay question on the final exam, and that essay question is drawn from the chapter that
she feels is the most important.
b. A manager uses a work sample test used for selection that has facets that tap in to every major aspect of the
job.
c. A researcher gives a test of “job satisfaction” to a group of participants and checks to make sure that his
results correlate with other measures of satisfaction.
d. A manager assesses how effective his selection test is by checking the performance of successful candidates
months after they are hired.
ANSWER: c
40. Intelligence, mechanical comprehension, and anxiety are examples of which of the following?
a. job requirements
b. constructs
c. theories
d. personality traits
ANSWER: b
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41. Which of the following is the most objective approach in making employee selection decisions?
a. “can-do” approach
b. statistical approach
c. clinical approach
d. “will-do” approach
ANSWER: b
42. Organization T uses a decision-making model in which an applicant is allowed to score poorly in one area of the
selection tests, as long as he or she scores very high in another area. What is this type of decision-making model
called?
a. a statistical model
b. a multiple hurdle model
c. a compensatory model
d. a multiple cutoff model
ANSWER: c
43. A university uses several criteria for accepting students. There is a minimum score that students have to achieve on
each of the criteria to get admitted. What type of selection model is being used?
a. moving criteria model
b. multiple criteria model
c. multiple cutoff model
d. compensatory model
ANSWER: c
44. A manager is examining the number of applicants for a job compared to the number of people needed to be hired.
What is this figure called?
a. the yield ratio
b. the selection ratio
c. the base ratio
d. the validity coefficient
ANSWER: b
45. What does a selection ratio of .9 mean?
a. It means 90 percent of the applicants applying to the position will be hired.
b. It means 10 percent of the applicants applying to the position will be hired.
c. It means 9 percent of the applicants applying to the position will be hired.
d. It means 1 percent of the applicants applying to the position will be hired.
ANSWER: a
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Scenario 6.1
Canadian Fasteners is an Ottawa-based packing firm that packages nuts, bolts, and screws for various Canadian
furniture companies. The firm started operations in 2003 with 13 employees and has grown to over 150 employees
today. Employees are paid hourly rates with benefits similar to other packing firms across Ontario. The work does
not need previous experience. Canadian Fasteners has been struggling to recruit and hire the right employees to take
the company into the new millennium. Part of the problem is that workers, especially floor workers, are hired by
word of mouth with no formal application process or even an interview. As a result, the company faces a high
turnover rate and spends valuable time training new employees who may not have the prerequisite skills to
effectively do the job in the first place.
46. Refer to Scenario 6.1. Which of the following does Canadian Fasteners need to do to gather information about its
candidates?
a. administer a lie detector test
b. run background and credit checks on all employees
c. gather résumés and applications and conduct interviews
d. continue as it is currently doing things
ANSWER: c
47. Refer to Scenario 6.1. Canadian Fasteners is trying to implement a process to recruit and hire workers. Which of the
following would work best in this type of organization?
a. a non-directive style
b. a structured interview
c. an open interview
d. a contextual interview
ANSWER: b
48. Refer to Scenario 6.1. Assume Canadian Fasteners designates a person to review the applications and conduct the
interviews. Which of the following is NOT helpful to the interviewer?
a. non-standardized questions
b. understanding the job
c. establishing an interview plan
d. controlling the course of the interview
ANSWER: a
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Scenario 6.2
Computer Direct Inc. is a mid-sized technology firm that specializes in designing, manufacturing, and selling
computers. The organization staff complement is very diverse, and most of the company’s employees are in the
development and design, sales, and marketing departments. Computer Direct has been using only one method to
make recruitment decisions for all of its employees, from managerial to technical to clerical. Data is gathered on
each candidate, and a committee assigns scores to candidates based on its understanding of the job. Candidates,
however, are not given the opportunity to be tested and hired based on their respective scores. Essentially, decisions
are made based on personal judgments.
49. Refer to Scenario 6.2. Which approach best reflects how decisions about recruiting are made at Computer Direct?
a. psychological approach
b. clinical approach
c. statistical approach
d. behavioural approach
ANSWER: b
50. Refer to Scenario 6.2. If Computer Direct wants to use more objective methods of decision making, which of the
following is the best approach?
a. demonstrated approach
b. compensatory approach
c. subjective iterative approach
d. statistical approach
ANSWER: d
51. Refer to Scenario 6.2. Which approach is considered superior and would best serve the needs of Computer Direct?
a. objective approach
b. clinical approach
c. statistical approach
d. personal judgment approach
ANSWER: c
52. Reliability refers to the extent to which two methods yield similar results, but not to the agreement between two or
more raters.
a. True
b. False
ANSWER: False
53. If an organization’s selection procedures yield comparable data over a period of time, the procedures are valid.
a. True
b. False
ANSWER: False
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54. Validity refers to what a selection procedure measures and how well it measures it.
a. True
b. False
ANSWER: True
55. Most organizations require application forms to be completed because they provide a fairly quick and systematic
means of obtaining a variety of information about the applicant.
a. True
b. False
ANSWER: True
56. Application forms should always require relevant dates, including date of birth.
a. True
b. False
ANSWER: False
57. It is estimated that at least 30 percent of applicants stretch the truth on their résumés.
a. True
b. False
ANSWER: True
58. Although many organizations are encouraging applicants to apply for jobs online, this practice slows down the
application process.
a. True
b. False
ANSWER: False
59. Online applications can speed up the selection process, combine information, and disseminate promising leads to
hiring managers more efficiently.
a. True
b. False
ANSWER: True
60. Although widely used, employment interviews pose potential concerns about validity.
a. True
b. False
ANSWER: True
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61. Data obtained from nondirective interviews are difficult to validate.
a. True
b. False
ANSWER: True
62. The situational interview is a variation of the unstructured interview.
a. True
b. False
ANSWER: False
63. A situational interview asks the applicant what he or she actually did in a given situation.
a. True
b. False
ANSWER: False
64. Situational interviews ask applicants how they would respond, while behavioural description interviews ask applicants
how they did respond
a. True
b. False
ANSWER: False
65. Behavioural description interviews are based on hypothetical situations.
a. True
b. False
ANSWER: False
66. “Tell me about the last time you disciplined an employee” could be a behavioural description interview question.
a. True
b. False
ANSWER: True
67. “Tell me more about your experiences on your last job” is an example of a nondirective interview question.
a. True
b. False
ANSWER: True
68. The premise of a behavioural interview is that “past performance is the best predictor of future performance.”
a. True
b. False
ANSWER: True
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69. Behavioural description interviews appear to be more effective than situational interviews, especially for higher-level
positions.
a. True
b. False
ANSWER: True
70. HRM specialists have found that panel interviews lead to higher reliability and faster decision times than one-to-one
interviews.
a. True
b. False
ANSWER: True
71. Video interviews have the advantages of speed and cost-effectiveness.
a. True
b. False
ANSWER: True
72. Typically, a computer interview requires candidates to answer a series (75–125) of multiple-choice questions tailored
to the job.
a. True
b. False
ANSWER: True
73. Employers are required by law to provide references for former employees.
a. True
b. False
ANSWER: False
74. Written letters of reference are very valid in the selection of employees.
a. True
b. False
ANSWER: False
75. Credit checks are the most common form of reference check.
a. True
b. False
ANSWER: False
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Chapter 6 - Employee Selection
76. The federal government relies extensively on employment testing in the selection process.
a. True
b. False
ANSWER: True
77. Aptitude tests measure what a person knows or can do right now.
a. True
b. False
ANSWER: False
78. The Scholastic Aptitude Test (SAT) is an example of a cognitive ability test.
a. True
b. False
ANSWER: True
79. Since biographical information blanks rarely have obviously right or wrong answers, they are difficult to fake.
a. True
b. False
ANSWER: True
80. Studies have shown that an objective scoring of biographical information blanks and application forms is one of the
most potentially valid methods that can be used to predict job success.
a. True
b. False
ANSWER: True
81. Personality tests measure such things as agreeableness, extroversion, and openness to experience.
a. True
b. False
ANSWER: True
82. Conscientiousness refers to the degree to which someone is trusting, amiable, cooperative, and flexible.
a. True
b. False
ANSWER: False
83. In most instances, employers can legally use polygraph tests to screen applicants.
a. True
b. False
ANSWER: False
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84. A comprehensive analysis of honesty tests reveals that they are valid for predicting theft, disciplinary problems,
absenteeism, and job performance.
a. True
b. False
ANSWER: True
85. Human rights legislation severely limits the types of medical inquiries and examinations that employers may use.
a. True
b. False
ANSWER: True
86. Medical examinations are usually conducted before an offer of employment is made.
a. True
b. False
ANSWER: False
87. Drug testing is used much more frequently in Canada than in the United States.
a. True
b. False
ANSWER: False
88. Because of the physical differences between the genders, physical ability tests should be carefully validated on the
basis on the essential functions of the job.
a. True
b. False
ANSWER: True
89. Predictive validity is assessed when the test scores of job applicants are held against the performance data for
existing employees.
a. True
b. False
ANSWER: False
90. In general, a criterion-related method of assessing selection test validity is preferred over other methods because it is
based on empirical data.
a. True
b. False
ANSWER: True
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91. Criterion-related validity is the extent to which a selection tool predicts or correlates with important elements of work
behaviour.
a. True
b. False
ANSWER: True
92. Concurrent validity involves testing applicants and obtaining criterion data after they have been on the job for some
indefinite period.
a. True
b. False
ANSWER: False
93. Predictive and concurrent validity are determined by comparing test scores with supervisor performance ratings.
a. True
b. False
ANSWER: True
94. If a work sample test includes major job functions and predicts job success, it has content validity.
a. True
b. False
ANSWER: True
95. The closer the content of the selection instrument to actual work samples or behaviours, the higher the content
validity.
a. True
b. False
ANSWER: True
96. Content validity is the most direct and least complicated type of validity to assess.
a. True
b. False
ANSWER: True
97. Asking an applicant for an accounting position to solve accounting problems similar to those encountered on the job is
an example of construct validity.
a. True
b. False
ANSWER: False
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98. Measuring construct validity requires linking a psychological test to job performance.
a. True
b. False
ANSWER: True
99. It is much easier to measure what individuals can do than what they will do.
a. True
b. False
ANSWER: True
100. Strategies for selecting managerial and technical people are relatively similar.
a. True
b. False
ANSWER: False
101. Measuring KSAOs of an applicant against the competencies required for the job is called person–organization fit.
a. True
b. False
ANSWER: False
102. When trying to achieve person–organization fit, managers will pass up potential employees who don’t embrace the
values of the company even if they have excellent job skills.
a. True
b. False
ANSWER: True
103. Person–organization fit has become more of a focus in firms that need teamwork and flexibility.
a. True
b. False
ANSWER: True
104. In large organizations, supervisors are usually responsible for making job offers and notifying applicants of selection
decisions.
a. True
b. False
ANSWER: False
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105. Define the concepts of reliability and validity.
ANSWER: Reliability describes the degree to which interviews, tests, and other selection procedures yield
comparable data over a period of time. For example, if an interviewer judges the capabilities of a group
of applicants differently today than yesterday, his or her judgment is unreliable. Reliability can also be
determined by interrater reliability, or agreement between two or more raters. Selection decision data
that are unreliable cannot be used as predictors of job success.
Validity refers to what a selection procedure measures and how well it measures it. For personnel
selection, validity indicates the extent to which data from a selection procedure are predictive of job
performance or other relevant criteria. In order for a test to be valid, it must also be reliable. However,
reliability does not assure validity.
106. Compare and contrast the following four interview approaches: (1) nondirective interview, (2) structured interview,
(3) situational interview, and (3) behavioural description interview.
ANSWER: In a nondirective interview, the interviewer allows the applicant the maximum amount of freedom in
determining the course of the discussion. The interviewer asks broad, general questions, but permits the
applicant to talk freely with little interruption. The greater freedom afforded to the applicant in the
nondirective interview is particularly valuable in bringing to the interviewer’s attention any information,
attitudes, or feelings that may be concealed by a more structured approach. However, the unstructured
nature of this approach limits the consistency of information provided and makes it difficult to crosscheck agreement with other interviewers. Thus, the reliability and validity of the nondirective approach is
suspect.
The structured interview has a number of standard questions asked of each job applicant. Questions are
job-related based upon job analysis. Since applicants are asked identical questions, the structured
interview provides a more consistent basis for evaluating job candidates. This interview strives to
maximize the validity of selection decisions.
With the situational interview, the applicant is given a hypothetical incident and asked to respond how he
or she would handle it. Responses are evaluated relative to pre-established standards.
Behavioural description interviews focus on actual work experiences in the applicant’s past. The
behavioural questions ask the applicant what he or she actually did in a given situation. This interviewing
approach assumes that past performance is the best predictor of future performance.
107. Identify and explain the five primary types of employment tests.
ANSWER: · Cognitive ability tests measure mental capabilities such as general intelligence, verbal fluency, numerical
ability, and reasoning ability.
· Personality and interest inventories measure dispositional characteristics such as extroversion,
inquisitiveness, and dependability.
· Physical ability tests assess a job candidate’s physical abilities such as strength and endurance.
· Job knowledge tests are a type of achievement test designed to measure a person’s level of
understanding about a particular job.
· Work sample tests, or job sample tests, require the job applicant to perform tasks that are actually part
of the work required on the job.
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